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eBay India And Snapdeal Start Cross Promoting Products; First Step To Acquisition?


eBay India and Snapdeal have started cross promoting products across the two sites (Hat tip: Nameet Potnis). So if you search for a product on eBay India which is not available on the site, but available on Snapdeal, then users will see a banner “…you can buy this from our partner site Snapdeal.com” along with product pricing and a small disclaimer that visitors will be taken to Snapdeal on clicking any of the product pics.

This looks like the first step towards an acquisition, however when we asked eBay India, the company declined to comment on this. Instead it said this is the “first stage of partnership” (second or third stage being acquisition?) between the two companies following eBay’s investment into Snapdeal. “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 pages at Snapdeal,” a company spokesperson said.



Other Snapdeal investors include Intel Capital, Russian venture fund ru-Net, Saama Capital, Recruit Co, apart from Nexus Venture Partners, Bessemer Venture Partners and IndoUS Venture Partners and a few angel investors. In October it was looking into raising $150-200 million reportedly at a valuation of $750 million. As of June 2013, Snapdeal claims to currently have more than 20 million registered users, with 14-15 million monthly active users, and from what we’ve heard, Snapdeal was clocking a gross turnover of more than Rs 100 crore a month in October.

SnapDeal’s competing marketplace Flipkart, has raised a total $541 million from five rounds. Indian e-commerce is now a battle between three key marketplaces: Amazon India, Naspers backed Flipkart and eBay backed Snapdeal.

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