has entered into a three-year business alliance with Sify to manage and control the Sify Classifieds site.
According to the deal, Sulekha will provide software, algorithms and customer service to Sify Classifieds and share its database listings. Online surfers from 22 cities can post ads on either Sify Classifieds or Sulekha.com and the ads will be displayed on both sites. In fact, the same user name and password will be valid on both sites.
Both Sify Classifieds and Sulekha will have the same system for posting the ads and the charges for the premium category ads will be the same ($40, or Rs 1,644, per month to post any number of ads). Prabhakar did not disclose the revenue-sharing arrangement between the companies, but added that it was limited only to the postings on the Sify Classifieds site and not the display or text ads.
Sulekha.com is working on developing more such alliances in the near future. Prabhakar is confident that such alliances will not cannibalise Sulekha.com even if a player like Sify ties up with another site or discontinues the alliance. He adds, "Sulekha.com has been in the business of classifieds and yellow pages for the last four years and has expertise in the technology in this business."