Amazon was in news this July when it announced a $2billion investment in Indian Ecommerce business sparking major speculation in the business circles. The Amazon deal is expected to be to the tune of $1.2 billion.
Facing stiff competition from ecommerce bigwigs like Flipkart and Snapdeal lately, Amazon is looking at strengthening its foundation in the country. Given the current scenario, inorganic growth seem the only option available for the ecommerce major.
According to a report in VC Circle, Amazon is interested in keeping Jabong as a separate property post the acquisition, which would be on the lines of Amazon's acquisition of Zappos in the US.
As for Alibaba, it is a little to early to comment.
Deal or no deal, it is certain that the Indian Ecommerce Market is hotting up. Going forward the industry is going to witness mergers and acquisitions. The fittest will survive while a large number of 'me too' outfits will shut shop. Watch this space for more.....
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