SoftBank to invest $627 million in Snapdeal

BANGALORE, INDIA: According to reports, Japanese telecom and media group SoftBank  is set to buy $627 million stake in the Indian e-commerce Snapdeal.

SoftBank Corp vice chairman and CEO of SIMI Nikesh Arora, said: "India has the third-largest internet user base in the world, but a relatively small online market currently. This situation means India has, with better, faster and cheaper Internet access, a big growth potential."

Snapdeal will use the investments in expanding its chain and make acquisitions particularly  in the area of mobile technology.

SoftBank is said to become Snapdeal's biggest shareholder. The company set to expand outside Japan had also bought the US brand Sprint Corp for $21.6. It had also promised an investment of $10 billion in India's IT and communications space after Prime Minister Narendra Modi's visit to Japan.