Jasper Infotech Pvt. Ltd, which runs e-commerce firm Snapdeal, has reportedly received a top up of Rs 140 crore($21 million) as part of its previously announced funding round from Luxembourg-based firm Clouse SA.
In February this year, Snapdeal announced it was raising $200 million in fresh funds from Ontario Teachers’ Pension Plan and funds advised by venture capital firm Iron Pillar.
The money received by Snapdeal this month is part of the same round which appears to be coming in tranches.
A spokesperson of the company said in a statement, “The raising of fresh funds at a consistent pre-money valuation is a reflection of the robust performance of Snapdeal and its continued focus on building a long-term business based on strong fundamentals like best-in-class customer experience and consistent growth in net revenue.”
“There is huge interest in the digital commerce market in India and investors are keen to back the businesses focused on real performance metrics,”Snapdeal spokesperson added.
The latest inflow of funds has happened just ahead of the Diwali season, for which e-commerce are gearing up to fight the discounting battle and revive sales growth.
Earlier this week, Snapdeal also announced plans to spend Rs 200 crore on a over the next 60 days as part of pre-diwali preparations.
Funding for Indian e-commerce companies has mostly remained a lacklustre affair this year. India’s poster boy Flipkart has struggled to hold its position amidst internal management changes, valuation markdowns, and several high profile employees exits. The company reported gross sales or GMV of less than Rs 2000 crore, while Amazon India’s gross sales increased to more than Rs 2000 crore.
For Snapdeal, the numbers were much lower than its rivals. As per a report, the company reported gross sales numbers of roughly Rs 600 crore in July – a fall of more than 50 per cent from the sales it had been generating until the end of last year.
The company has even recently shut Exclusively, its online platform for premium and luxury fashion goods in an attempt to cut costs and conserve cash.