Snapdeal acquires Delhi based eSportsbuy
This is an interesting acquisition for Snapdeal, as the first acquisition – i.e. Grabbon pretty much changed company’s directions (read Snapdeal Story) and helped it move aggressively in deals space. Now that the company is foraying into products and needs a niche segment to cater to, eSportsbuy acquisition will help Snapdeal foray into products, which is not yet exploited by online players.
ET puts the deal size to INR 50-75 crores at an annual revenue of INR 10 crores, i.e. 5X valuation, which is surely on a higher side (and debatable).
Now that Amazon India launch can happen anytime this quarter, expect more consolidation in the industry as players are gearing up to improve the operational efficiency as well as expand into verticals that provide a better margin.
Another player in this industry includes Bangalore based Playgroundonline.
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