The company last raised capital in February 2016 and was valued at around $6.5 billion.
Snapdeal is in discussions for a $100-million infusion from new and existing investors in what would be its first major fund-raiser since 2016, The Times of India reported.
The Kunal Bahl and Rohit Bansal-led start-up is looking to be valued around $800 million to $1.2 billion. Bank of America Merrill Lynch is its domestic and global advisor, TOI quoted sources as saying.
The e-tailer company has informed potential investors that Japan-based SoftBank has committed to a half of the round, the paper added.
Moneycontrol could not independently verify the report.
The company last raised capital in February 2016 and was valued at around $6.5 billion. After its potential acquisition by Flipkart in 2017 fell through, co-founders Bahl and Bansal bought back 10 percent shares at a valuation below $100 million.
The development follows ShopClues' acquisition by Singapore’s Qoo100 for below $100 million in October after a ShopClues and Snapdeal merger fell through in early 2019. ShopClues was once valued at $1.1 billion.
The new fundraiser is being looked at as a test for the co-founders’ ability to inspire confidence in investors after the value erosion, the publication quoted a source saying.SoftBank and Snapdeal declined to comment on the "market speculation".LIVE NOW... Video series on How to Double Your Monthly Income... where Rahul Shah, Ex-Swiss Investment Banker and one of India's leading experts on wealth building, reveals his secret strategies for the first time ever. Register here to watch it for FREE.