The stalled Alibaba-Snapdeal deal is proof India’s e-commerce valuations are insane
By Manu Balachandran and Madhura Karnik, Quartz
On March 18, one of India’s most celebrated startups received a huge blow.
Alibaba Group Holding, promoted by Jack Ma, China’s third-richest man, backed off from buying a stake in Snapdeal, one of India’s largest online marketplaces. This would have been the Chinese e-commerce giant’s first direct investment in India.
The deal stalled after Snapdeal apparently sought a valuation of between $6 billion and $7 billion (Rs37,500 crore-Rs43,800 crore) while Alibaba was looking at valuing the company at under $5 billion (Rs31,200 crore).
The breakdown in negotiations has raised questions about the huge valuations of India’s e-commerce giants—essentially, are these massive numbers justified and sustainable?
Keep reading The stalled Alibaba-Snapdeal deal is proof India’s e-commerce valuations are insane – Quartz.
