E-commerce start-up giants Snapdeal, at one point of time was on the verge of collapse due to a poor merger deal with Flipkart which eventually lead to an enormous funding crunch , is now engaged in fresh talk to raise funds from existing as well as new investors. The Gurgaon based company is looking forward to raise approximately 100 Million USD. Japanese high profile investor SoftBank is said to have initiated fresh talks with Snapdeal over the prospect of future investment. The Japanese investor in

the year 2017 had underwritten its funding when Snapdeal’s merger with Flipkart collapsed completely. The Gurgaon based company is desperate to bring in the Japanese investors; however SoftBank has rarely backed a company to whom it has underwritten investments before.

Snapdeal is expecting an impressive market valuation of 800 Million USD. If the company manages to realise the market valuation then it will be regarded as one of the most spectacular comeback by an Indian company. The new business model employed by Snapdeal is expected to overcome the adversities. The new business model is focussed more on un-branded products and promotion of these products in India’s second tier cities. The idea behind the decision is that these segments are very much unpenetrated and therefore it will offer a large potential for growth. However, this particular business model has certain drawbacks such that it is overwhelmingly depended on unbranded products which do not fetch much profit in second tier cities of India, which will in evidently have long term effects on the company. It would be interesting to observe whether investors will consider investing or identify certain loopholes in the new business model and refrain from further funding.