If you thought eBay would acquire Snapdeal very soon, then here’s some disappointing news for you: Snapdeal is planning an IPO in the US within next 12-24 months instead. Snapdeal co-founder Kunal Bahl told Times of India, that an acquisition by eBay is an unlikely scenario. “We’re building for the long term and, given our rapidly increasing scale, IPO is looking like a foreseeable path,” Bahl said.
eBay India meanwhile, is open to acquiring companies in India as long as it gives them advantages in technology, people, business models and particular verticals. eBay managing director Latif Nathani told FirstBiz that it is also open to a joint venture. “But there are no active discussions with anyone right now,” he said. The company is one of the biggest investors in Snapdeal that works on a marketplace model just like eBay. Snapdeal had raised $133.77 million in February this year in a round led by eBay.
Both eBay and Snapdeal have been working closely over the past few months and it started the “first stage of partnership” in December last year when the sites started co-promoting each other’s products. “The first stage of the partnership is now live with benefits for both buyers & sellers. eBay India customers will now see even more variety with select Snapdeal listings showing up on eBay India in some search pages. In addition, eBay India sellers can tap even more demand as some of their listings will be showcased in search results pages at Snapdeal,” an eBay India spokesperson had said.
It is worth noting that eBay Senior Vice President and APAC Managing Director Jay Lee had said that it continues to invest in Snapdeal due to its “complementary business model, good management team and strong brand.” Just the sort of things Nathani said they are looking for! That being the case, Bahl’s statement on eBay acquisition comes as surprise.
Earlier this month there were reports that the acquisition talks between Flipkart and Myntra were stalled due to a disagreement on the future of Myntra. It is not clear what implication this has on Snapdeal’s and eBay’s plans.