One of the leading online shopping portals of the world eBay has recently invested a certain amount, which it didn’t consider to disclose publicly, in one of the most popular eCommerce firms in India Snapdeal. eBay has even started a commercial partnership with the company, and it looks like this will help both the firms in coming days.
As I mentioned the US-based online market place didn’t disclose the amount of its investment, but according to some reliable and trustworthy market pros the deal may value around $30-50 million. It has to be added here that this value size of the said deal also adds investment by a popular Japanese firm.
eBay recently published an official statement to acknowledge the deal in public. In its public the company said, “The partnership seeks to drive more consumer demand for eBay and Snapdeal merchants along with wider selection for India consumers in a rapidly growing market.”
However, eBay didn’t provide any information whatsoever on the actual value of the deal size. It didn’t even disclose the name of the investors of this deal. Currently we can only say that this deal might bring a new breeze of air in the cloud of online marketplace of India, and we, the users are desperately waiting for that to happen.
eBay needs to buck up its activity in the India market as its main competitor Amazon launched its online marketplace in India very recently. eBay eventually has done a lot of promotional works to take on Amazon and other online shopping portals in India. It has spent a lot in the advertising purposes too.
While answering to the Internet & Mobile Association of India research, eBay happily said that Indian e-commerce Market is expected to increase from $1.2 billion in 2012 to $1.8 billion in 2013. This encouraging growth rate certainly works as a catalyst to eBay to invest in Snapdeal to strengthen its position in this market.
Mr. Jay Lee, who is the active Senior Vice President and Managing Director of eBay Asia Pacific, quoted, “The growth of online shopping in India is at an exciting phase. We chose to partner with Snapdeal due to their complementary business model, good management team and strong brand.”
eBay was founded in 1995, and since it has gradually established itself as one of the best online marketplaces of the world. It currently has more than 100 million active users, and it’s quite popular in India too due to its awesome features like good customer support, low cost, ultra-fast delivery time etc.
On the other hand Snapdeal started its journey in February 2010 in India. It currently has more than 1,500 employees, who are actively working for the well-beings of its coveted users. Snapdeal delivers products to more than 5,000 towns and cities in India.