Jack Ma, the founder of Alibaba and the wealthiest man in China is currently on a visit to India as a member of business delegation from Zhejiang, his hometown in China. Amongst the many business meetings lined up during his visit here, there are high chances that he will meet Kunal Bahl, the founder of Snapdeal, though there has been no official announcement of the meeting.
Speculations are rife about this meeting especially with SoftBank’s $627 million investment in Snapdeal in September 2014 along with its heavy investment in Jack Ma’s Alibaba based in China. Interestingly, Snapdeal and Alibaba operate on similar platform of offering a viable marketplace to both buyers and sellers.
Clinching a buyout deal or a strategic partnership deal with Snapdeal would prove to be much more advantageous for Jack Ma rather than to set up an entirely new entity in India, considering the increasing competition amongst Flipkart, Snapdeal and Amazon, the world’s most well established ecommerce player to establish a strong foothold in India.
Despite Alibaba’s entry in India in 2010, it has yet to deliver an impressive performance. Also, Snapdeal has already conceded with the fact that its operations are quite same as to Alibaba’s mode of operations while Alibaba’s strong foothold in the Chinese ecommerce market with its shopping portals Taobao and Tmall being highly preferred and hence very successful.
When two businesses share similar technology and interests, joining hands together seems to be the next step to embark upon especially when geographical constraints play a diminishing role in the emerging ecommerce market scene.