Chinese e-commerce giant Alibaba is reported in talks with Snapdeal to enter India.

A source knowledgeable with the matter said Alibaba considers India a huge opportunity and the best way to enter the market is via a partnership with Indian marketplace Snapdeal.

Snapdeal is currently raising funding worth as much as US$500 million.

The marketplace has already raised a total of $233 million from two rounds of funding from investors including eBay.

Japan’s Softbank has also reportedly been interested in investing in Snapdeal, which offers more than 5 million products across over 500 categories and boasts more than 25 million members and 50,000 sellers.