EBay to acquire Indian retailer Baazee.com for $50m

SAN JOSE – EBay is to acquire Indian shopping website Baazee.com, the largest online marketplace in India, in a deal valued at $50m.

The agreement will allow eBay to expand its global reach into the burgeoning Indian market. Based in Bombay, offers a diverse online marketplace for a range of buyers and sellers throughout India and currently has more than 1m registered users.

Meg Whitman, president and CEO of eBay, said: "Our relationship with Baazee.com is another important step in the growth of eBay's global marketplace. Although it's early days for e-commerce in India, we believe there is great opportunity over the long term. Baazee.com's strong management team and solid focus on its community make it a natural fit with eBay."

India is still a young market in terms of e-commerce, with internet penetration standing at 17m, but like other developing markets such as China it is growing fast. The number of internet users in India is expected to grow to more than 30m in 2006, according to research group IDC.

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