Speaking on the sidelines of the launch Aghi disclosed that some part of the $ 10 million would be used for investments in B2B marketplaces in India in return for equity stakes in the companies. Aghi also indicated that Ariba would consider setting up the Ariba Net, a horizontal marketplace to integrate vertical markets in India. Aghi also did not rule out the possibility of taking an equity stake in the company's first Indian client - ITNation.com - a B2B marketplace for technology related products and services. "We will look at taking equity positions or acquiring companies as the case may be to establish a presence in the e-marketplace scenario in India" said Aghi. Ariba plans to use its India operations and the talent base therein to develop marketplaces for customers across the world as well as establish a strong R & D wing which will focus on product creation.

"I believe this will be our largest subsidiary in the world given the huge skaill base" said Larry Mueller, President and CEO of Ariba Inc who is here to launch the subsidiary. Mueller added that the company expected to be active in market place building in sectors like automobiles, metals, commodities, chemicals, textiles and IT.

Mueller indicated that the company would pursue an acquisition led path to consolidate its position in the technology space. Outlining the features of the B2B marketplace model and addressing concerns of cartelisation, Mueller said "most traditional players will be the key constituents of any e-marketplace and regulatory authorities will have to perform their role so there is no price fixing and smaller players are allowed in the marketplace". On the issue of the holding pattern of these marketplaces, Mueller said most major manufacturers are founders of the marketplaces, they also typically bring in VCs and technology partners who take equity positions in these companies".

Ariba already has partnerships with Wipro, Tata Consultancy Services, Mind Tree Consulting and PlanetAsia in India. Ariba Inc was founded in 1996 and is a Nasdaq listed company whose market capitalization stands at $ 27 billion.