Alibaba may snap up a deal in India
According to the Economic Times report, Chinese e-commerce giant Alibaba may invest in Snapdeal to tap into the burgeoning e-tail industry in India. The company, which was recently listed on the New York Stock Exchange (NYSE), is expected to be valued at over $165 billion, at the conclusion of its scheduled IPO.
Hitherto, Alibaba has only been connecting Indian merchants with overseas buyers and sellers. With this tie-up, Alibaba will be competing with e-commerce marketplaces like Amazon and Flipkart, who claim the lion’s share of the Indian online market. The company’s biggest advantage will be its burgeoning sales volume, which surpass that of Amazon and eBay combines.
Answering an e-mail query, Pamela Munoz, Manager (International Corporate Communications) at Alibaba, told the Economic Times that they were currently in a quiet period.
The Economic Times report estimated that Snapdeal could raise up to $300 million in a potential round of fund-raising. In the current year, Snapdeal has raised a total of $233 million through to rounds of investments.
Alibaba.com was the company's first online commerce platform, launched in 1999. The e-commerce portal is a leading English-language wholesale platform focused on supporting global trade. Sellers on Alibaba.com are typically manufacturers and distributors based in China and other manufacturing countries such as India, Pakistan, the United States and Thailand.