Very recently there was talk of Snapdeal and Paytm merging after they both received hefty funding from Chinese powerhouse Alibaba. Now a twist to the tale emerges as Alibaba is reportedly planning to invest in Indian Marketplace leader, Flipkart.
Flipkart’s owners had confirmed a company valuation of $15.2 billion in 2015, but it is understood Alibaba finds the figure a little excessive and it remains a sticking point. It is reported, Snapdeal’s value of $ 6.5 billion is also seen as a little steep by Alibaba, who is interested in increasing its stake. The Indian marketplaces will surely have to do some soul-searching if they are to iron out a deal.
Alibaba became the largest shareholder in Paytm last October when it increased its stake, by putting a further $680 million on the table. It had invested $500 million in Snapdeal just a month earlier. If Alibaba were to invest in Flipkart it would become one of the biggest 3 foreign investors in Indian ecommerce, along with Tiger Global Management and Soft Bank.
So far this is just speculation based on anonymous sources, but if you consider the burn rate the large online marketplaces are currently going at, they will need excessive funding in the not to distant future. With Alibaba planning to take on Amazon in India like it did in China, things are really getting interesting. Watch this space for developments!
Editor team is specialized in introducing the marketplace content targeting the Indian online sellers. They plan and coordinate to bring the appealing content for the small businesses on how to partner with the e-commerce sites like Amazon and Flipkart and strategies for improving their online business.
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