eBay Investment Rumored in Indian Firm
By David A. Utter
Ecommerce in the populous Asian nation of India continues to grow and expand as a multi-billion dollar business concern. Figures cited by the Times of India showed growth from $6.3 billion in 2011 to $14 billion for 2012.
Those figures indicate upward momentum, and where there is potential for growth, there's also potential interest from forward-thinking companies looking for profitability beyond the domestic US market. Current reports cite interest from eBay in Snapdeal, with sources suggesting eBay will buy into a "significant stake" in the company.
Snapdeal is a broad online marketplace seeking to tap into India's rapidly growing ecommerce customer base. The New Delhi-based firm offers products like mobiles and electronics, as well as connections to interests in the service industry like restaurants and spas.
Although eBay's investment or any other interest in Snapdeal remains unconfirmed officially, potential numbers have made the rounds in a Times of India report. eBay's round of funding alongside current investors could bring it a five percent stake in Snapdeal, with eBay investing about $300 million to gain that minority interest.
Despite missteps in other Asian markets like China and Japan, eBay's attention to India seems a little more grounded, perhaps reflective of a new international strategy by the company. eBay first entered the India market with a 2004 acquisition of Bazee.com. The company maintains a branded presence at ebay.in, a development center at Chennai that opened in 2007, and a reported interest in opening another development center in Bangalore.
About the author:
David A. Utter is a freelance writer based in Lexington, KY. He has covered technology topics from search to security to online business and has been quoted in places like ZDNet and BusinessWeek. He considers his appearance on NPR's "All Things Considered" with long-time host Robert Siegel a delightful highlight. Send your tips to firstname.lastname@example.org and find him on Twitter @davidautter and on LinkedIn.
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