Online marketplace Snapdeal has raised $627 million from SoftBank, the largest single tranche investment in an Indian e-commerce company, reports the Economic Times. In an earlier report, it was estimated that the e-commerce company could raise $600-650 million from SoftBank, to support its expansion plans.

The investment will make SoftBank the largest stakeholder in Snapdeal, which has now raised close to a $1 billion in 2014. Snapdeal's existing investors, a list that includes, eBay, BlackRock, PremjiInvent and hedge funds Myriad Asset Management and Tybourne Capital, also participated in the round.

The investment has been made through SoftBank's recently created unit, SoftBank Internet and Media Inc (SIMI), which is headed by Nikesh Arora, who has been given the responsibility to aggressively scout for opportunities in emerging markets. Arora will be joining the Snapdeal board.

"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," Arora said in a press statement.

The company will be making strategic investments in ramping up its efforts in technology and supply chain management. To strengthen its technology efforts, it will open innovation centres across the country.

It will also look to make three to four strategic acquisitions over the next few months.

In 2011, SoftBank had invested $200 million in mobile advertising firm InMobi. And in recent times, SoftBank has also invested $210 million in taxi service provider Olacabs, an online marketplace for cabs and car rental services.