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Snapdeal may acquire Komli Media for $300 million; Shopclues is also in early talks

E-commerce company Snapdeal is reportedly
in advanced talks to acquire mobile advertising agency Komli Media in
a deal that values the company at about $300 million.

According to a Economic Times
report, citing sources, the deal will give Snapdeal engineering capabilities in
Bengalore as it battles Flipkart, as well as help it notch up advertising
revenues by selling space on the ecommerce site.

E-commerce company Snapdeal is reportedly
in advanced talks to acquire mobile advertising agency Komli Media in
a deal that values the company at about $300 million.

According to a Economic Times
report, citing sources, the deal will give Snapdeal engineering capabilities in
Bengalore as it battles Flipkart, as well as help it notch up advertising
revenues by selling space on the ecommerce site.

According to audience measurement
platform SimilarWeb, Snapdeal had an estimated 79.8 monthly visitors in
February and Flipkart, 110.5 million. A undisclosed person familiar with the
development told the Economic
Times
, “These guys have so much traffic, it makes sense to monetise
it.”

Rival Flipkart acquired ad
technology company Adiquity. According to media report, Flipkart was reportedly
interested in buying Komli Media as early as December before acquiring AdIQuity
in March this year. Amazon is also said to have been in talks with the mobile
advertising agency.

Currently, reports indicate that
both ShopClues and Snapdeal are in talks regarding a possible acquisition though
it is difficult to verify the veracity of these rumors since, so far, all three
parties are keeping silent on the issue. 
Although, a Snapdeal spokesperson has denied the rumors saying that, “This
is incorrect, we are not acquiring Komli media.”

Delhi-based Shopclues has also reportedly
held preliminary discussions to acquire Komli Media as e-commerce companies
look to grab a share of the Rs 3,575-crore digital ad pie. According to the Financial
Express
, the companies are yet to arrive at a figure for the deal.

“We will look at acquisitions, but to build
the ecosystem. We are not going to do a category acquisition. We might look at
a pay0ment solution, a wallet solution, customisation and personalisation etc,”
Radhika Aggarwal, Co-Founder and CMO, Shopclues, told the Financial Express.

Founded in 2006, Komli has raised
$97 million in five rounds from investors including Nexus Venture Partners and
Peepul Capital. It employs nearly 300 people across India and started as a
digital advertising network — buying and selling advertising inventory online
in Asia Pacific. . The company deals in solutions across display, mobile,
social, and video for marketers, agencies and publishers.

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