InfiBeam : Amazon – Is Something Cooking?

We have been hearing ‘some’ rumours about Amazon acquiring InfiBeam to enter the Indian ecommerce space.

Leaving the rumor aside, InfiBeam’s new logo/interface speaks of a potential dance:

infibeam and amazon logoThe site interface also imitates Amazon’s interface, color by color (does that remind you of Baazee/eBay deal?) and the rumour that  we have been hearing is still at a ‘high’ level.

InfiBeam started with automobile segment and later expanded into mobile/electronics/lifestyle products. The company acquired Picsquare, in order to enter the gifting space.

Amazon’s India Connection | Need For Speed

As per regulations, foreign companies cannot enter into retail business directly (they can engage in B2B trading though) – and that’s precisely the reason why you won’t see Yahoo Shopping/Amazon running their operation in India.

FDI up to 100% permitted for e-commerce activities subject to the condition that such companies would divest 26% of their equity in favour of the Indian public in five years, if these companies are listed in other parts of the world. Such companies would engage only in business to business (B2B) e-commerce and not in retail trading

If you look at some of the successful ecommerce startups in India, many of them have an Amazon background (InfiBeam founder was part of Amazon M&A team, by the way) and all of these startups (like Flipkart/Pustak) are in a way, building an Amazon in India.

So why would Amazon let go of the great Indian opportunity?

While we don’t know the details of a potential deal between InfiBeam and Amazon, the logo and the entire site interface does make an interesting story!

What’s your take? Got inside scoop?

Recommended Read: Analysis of ecommerce industry in India.

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