Strategic Acquisitions by Flipkart, Snapdeal & Paytm in 2015

Online marketplaces Flipkart, Paytm and Snapdeal were the top 3 ecommerce players that received most of the funds in 2015. Naturally these funds were utilized to make their businesses stronger than the previous year. Investments, acquisition & mergers were the areas where etailers channelled their accumulated funds.

This Deal Street Asia report states how Flipkart, Paytm and Snapdeal were aggressive in their acquisition strategy in 2015. Here’s a roundup of investment and acquisition deals sealed by online marketplaces.

Flipkart

The ecommerce leader’s aim was to get hands on mobile-focused companies in 2015 to augment their mobile platform. Other acquisitions were centred around logistics & supply chain and building its ad network.

• Invested in Zinka, an online freight-booking service to strengthen its logistics arm

• Purchased stake in MapmyIndia, a digital map making service to extend logistics services

• Acquired Appiterate, a mobile marketing automation platform to strengthen the ecommerce firm’s mobile presence

• Acquired mobile ad network AdiQuity

• Bought stake in WeHive technologies, a marketplace and auctions start-up

• Bought majority stake in FXMart, to launch mobile payment facility

Paytm

Paytm backed many start-ups across various ecommerce categories. Unlike Flipkart, Paytm’s acquisition & investment strategy had no set pattern. From hyperlocal start-up to aggregator for auto rides, the marketplace dipped into many sectors.

• Acquired hyperlocal company, near.in and dabbled in online-to-offline (o2o) sector

• Invested in NDTV’s tech ecommerce portal, Gadgets360

• Tied-up with the largest mobile advertising network InMobi

• Invested in Jugnoo, an online aggregator for auto rickshaw rides

• Invested $10 million in logistics data analytics firm LogiNext

• Zovi’s app-only marketplace ‘Little’ got funds from Paytm

Snapdeal

Online marketplace Snapdeal was on an acquisition spree in the year gone by. The company made it clear at the beginning of the year that it was looking to acquire companies and was willing to pay any price, if it would add strategic value to the business.

• Biggest acquisition was Free Charge, which will help it to fulfil its dream of becoming the operating system of digital payments

• Bought MartMobi, a Hyderabad-based mobile technology start-up to boost its mobile platform

• Bought a majority stake in RupeePower, a digital financial distribution platform

• Acquired Letsgomo, mobile applications & solutions company

• Acquired 42% majority stake in GoJavas to strengthen its logistics arm

• Announced investment in online grocery start-up Peppertap

• Acquired advertising technology start-up Reduce Data

In 2015, all the three marketplaces invested heavily in start-ups that will help them to improve their respective logistics, mobile technology and advertising network in the long run. Let’s see which start-ups find takers in 2016.