 "Kunal Bahl")
Classifieds sites let micro, small and medium-sized businesses sell online for free with minimal documentation. In India– for those who don’t have the capital, reach, or credentials to join the ranks of franchised stores or ecommerce sellers– classifieds are the easiest way to get online and get new customers.
Kunal Bahl, CEO of Snapdeal, India’s largest mobile commerce website, recently announced that the company will invest $100 million in Shopo, an online marketplace that provides zero-commission listings. The investment will take place over the next two years and will focus on technology and brand building.
Alibaba allure
Bahl explains that Shopo is inspired by Alibaba’s similar marketplace model Taobao. Alibaba is an investor in Snapdeal.
Snapdeal’s investment in classifieds is not the first of its kind in India. Shopo’s goals are reminiscent of Quikr, India’s largest classifieds site. Quikr has raised a total of US$350 million in seven rounds from investors like Tiger Global, Warburg Pincus, and more. It operates in more than 1,000 cities in India.
Other sites in India like Alibaba-funded online wallet PayTM have also developed classifieds portals.
Trust issues
Unlike the certified sellers on larger ecommerce stores, those on classifieds sites often lack credentials. Shopo and Quikr both have chat features to facilitate conversation between sellers and buyers – just like Taobao does. Bahl explains that the Shopo app also shows a user’s location to help make communication more transparent.
