Snapdeal acquires US based advertising company

Visual from the Snapdeal website.

India’s second largest e-commerce firm Snapdeal.com has acquired Reduce Data, a US-based advertising platform, for an undisclosed amount as online retailers bet on advertising to become a potential key business.

Snapdeal, run by Jasper Infotech Pvt. Ltd, on Wednesday said that it has signed an acquihire deal, a deal done primarily for expertise of the acquired firm’s staff.

The companies did not disclose the financial details of the transaction but said the 15-member team of Reduce Data will join Snapdeal.

Reduce Data helps brands to deliver advertising strategies for consumers across platforms and devices.

Founded in late 2012 by Asif Ali, the company claims that it’s platform leverages artificial intelligence, real-time data and other tools, delivering high return on investment for advertising campaigns.

The company currently has customers across the US, the UK and India.

“At Snapdeal, we are always on the lookout for talented people who come with specialized skills that augment our capabilities. Asif comes with 17 years of rich experience in building web scale technologies, Product Management and building highly specialized teams focused on a data platform and ad tech products. We are confident that Asif and his team will further strengthen our technological capabilities,” said Rohit Bansal, co-founder, Snapdeal.

Most large e-commerce firms, including Flipkart and Snapdeal, are trying to build large advertisement sales teams and improving their technology to show ads based on data collated on the shopping habits of millions of Indians, Mint reported in February.

Ad revenues are expected to provide a much-needed boost to margins for e-retailers and create an additional, large revenue stream for them.

Flipkart acquired AdIQuity Technologies, a mobile advertising technology firm in March in a move to improve its ad platform.

Globally too e-commerce firms get significant chunk of revenues from ads. Alibaba, which listed in the US last year in a record initial public offering generates over 55% of its sales from ads, according to data by iResearch Consulting Group. The company also acquired a majority stake in online ad firm AdChina in January to increase ad revenue.

Acquisition of Reduce Data by Snapdeal is the company’s latest push into strengthening its advertising business. The company introduced ads on its platform in May 2014. Founded in 2010 by Kunal Bahl and Bansal as a deals site, Snapdeal, backed by investors such as Japan’s SoftBank Corp and online marketplace eBay, has become the biggest local rival to Flipkart.

The company currently offers 15 million plus products across more than 500 categories on its platform. Snapdeal claims to have more than 200,000 sellers that deliver across 5,000 plus cities and towns in India.

(This article was first published on Livemint.com)

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.