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15-member team of Reduce Data will join Snapdeal. Photo: Snapdeal
15-member team of Reduce Data will join Snapdeal. Photo: Snapdeal

Snapdeal acquires US-based advertising firm Reduce Data

Reduce Data team to join Snapdeal as retailers bet big on advertising to become a potential key business

New Delhi: 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.

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