Market sources, however, peg the ratio at about 1.5:1 Given the fact that Productorium had availed of investments to the tune of about 7.5 crore from Chrysalis earlier in the year, it is fairly clear that the site commands greater bargaining power. Market sources also estimate that Productorium is likely to have divested about 25 per cent to 30 per cent to avail of the 7.5 crore investment from Chrysalis which pegs the site's valuation at about 30 crore.

The merger of the two most popular sites in the space is also likely to dilute the chances of funding for some of the other sites in the customer community space. Speaking at the press conference to announce the merger Shujaat Khan, Director Chrysalis Capital indicated that none of the parties enjoyed a majority stake in the merged entity though he was unwilling to elaborate on the new shareholding pattern. The new company which awaits christening will function as a consumer community site which provides a platform for manufacturers and customers.