Talks about sale of Snapdeal to Flipkart collapses

” The opportunity of ecommerce in India is immense, and the surface has barely been scratched” according to Kunal Bahl, co-founder of Snapdeal. The breakdown of talks over a sale of Snapdeal to Flipkart, its largest peer – a deal encouraged by SoftBank, Snapdeal’s main investor, but resisted by Mr Bahl. This has in fact weakened Snapdeal’s ability to compete with its homegrown rival and Amazon’s Indian subsidiary.

In India only 17 per cent of internet users buying online, ecommerce sales hit   £12.16bn  ($16bn) . Flipkart still accounts for a bigger share of online sales than Amazon India. However, Amazon India has captured higher-spending customers with last year’s launch of its prime service.