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Flipkart and Amazon have set the stage for fierce competition in India by announcing huge investment plans but US-based e-commerce major eBay is not looking to join the club. The company is instead focused on playing by its strengths, and "creating a long-term, sustainable and healthy business" in India.
In July, home-grown e-commerce firm Flipkart announced it had raised $1 billion, to further its business in the country. A day later, American online major Amazon issued a statement saying it would invest an additional $2 billion in the country.
"We don't react to these (investment announcements); eBay is not that type of a company," said Latif Nathani, managing director of eBay India. "Whatever other companies are doing is as per their game plan. They have their goals of IPOs (initial public offers) or fund raising, we don't have any of that. We have a parent that is listed, and is profitable. We are getting all the investments we ask for, so what's the need for me to get into that race?"
"We are totally focused on what is required. There are lots of distractions that happen, and we try to ignore them," he added.
Nathani, however, said India is an important region for eBay and the company would continue to scout for acquisitions to strengthen its position. To compete against the large competitors, eBay has invested in SnapDeal, another major player in the e-commerce space here.
According to reports, eBay owns between 35 per cent and 40 per cent stake in SnapDeal, which was founded by Indian entrepreneurs Kunal Bahl and Rohit Bansal. The two founding partners are together estimated to hold less than 20 per cent in SnapDeal.
