According to Bahl, Alibaba's success at the bourses will give a big boost to Asian e-commerce companies. I think it's a fantastic outcome for non-western world e-commerce companies. E-commerce companies with the largest market cap are all from the west. Now, we are seeing larger e-commerce companies from the east, especially China today because the market is larger. In due course, you will see such companies from India, Snapdeal co-founder Kunal Bahl told reporters on the sidelines of the GMIC summit in Bangalore on Thursday.
Snapdeal's cross-country rival Flipkart echoed similar sentiments. I think the Alibaba IPO validates that there is a large opportunity in emerging markets for e-commerce, and in fact larger than what developed markets would have. It's a great example and is very motivational for us. It definitely makes the sentiment better for the Indian markets as well," said Flipkart co-founder Sachin Bansal.
Snapdeal, which recently roped in Tata Group chairman emeritus Ratan Tata as one of the investors, is in talks with investors to raise $600 million, while Flipkart recently raised $1 billion from a group of marquee investors at a valuation of $7 billion.
Flipkart's Bansal also made a strong pitch for Indian citizens settled abroad to come back and work in the country. According to Bansal, Prime Minister Narendra Modi's visit to the US may also enthuse a host of Indian expats to get back to their roots and contribute to the domestic ecosystem.
This the right time to come back to India and create a lot of value here. Create your own Silicon valley here. We depend a lot on talent to come back to India, people who have done it before in the US. I think the PM's visit itself should motivate a lot of Indians to come back to India. We are constantly looking to achieve that, Bansal said at the summit.
Having raised $1.7 billion to date, Flipkart will invest heavily on technology and improving supply chain infrastructure. The company will also consider acquisitions in near future, Bansal added.