The Delhi-based firm could be valued at about $700 million (Rs 4,700 crore), if the transaction is successful, according to two people aware of the talks.
The deal will also give SoftBank — founded by Masayoshi Son — a larger role in the Indian travel market, where online penetration is much higher as compared to retail.
Daily shipments have dropped by half over the past month as Snapdeal restructures its operations and awaits a lifeline from primary investor SoftBank.
Among the online travel agency's pre-IPO VC backers, SAIF was the first to invest and is last to exit. The venture capital firm had invested about $25 million in MakeMyTrip between 2005 and 2008 and owned about 41% stake in the company when it debuted on Nasdaq in 2010.
The world's largest internet company is planning to directly invest in or acquire startups that cater to whom it refers to as next billion internet users.
Software major Infosys and the country’s top lender to small businesses, Sidbi, are among investors that took part in the funding.
The deal is expected to lead to a shakeout in the sector, which has witnessed a tough battle between Flipkart, Amazon and Snapdeal.
IRCTC charges Rs 40 on every ticket booked in air-conditioned classes. For sleeper class, a service charge of Rs 20 is levied.
International Finance Corporation is looking to invest about $20 million in IDG Ventures India III
The company, which is keen to shore up its reserves, could settle for a valuation of $10-12 billion, according to the sources.
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