China’s Alibaba has been in talks with Snapdeal as it plans to enter the Indian online retail space. As per the article in Economic Times it is considering an investment in Snapdeal as one of its options. One of the two sources who were aware of the development shared, “Eventually it will look at entering the business-to-consumer space in India and talks are on.”
The company which is expected to be valued at $165 billion approx. at the ending of its initial public offer has discussed a possible investment opportunity with Snapdeal.
Currently Alibaba has only been linking Indian merchants with overseas buyers. If it enters India, it will be in direct competition against giants such as Flipkart or Amazon. This will be interesting to watch how they will promote themselves to tap the Indian market.