Mumbai: Indian arm of global e-commerce major eBay and group buying website Groupon, who compete for business with each other, have forged a formal tie-up for increasing visibility.

Under the deal inked earlier this month, the country's biggest e-commerce portal eBay has put up a tab on its homepage directing users to Groupon's Indian unit Crazeal.

When contacted, Crazeal Chief Executive Ankur Warikoo confirmed the development and said the deal benefits both companies since it leverages their synergies.

Warikoo said Crazeal specialises in offers on travel and local services which include wellness, food and beverages, beauty, areas where eBay does not have a presence.

Similarly, putting up a dedicated tab on eBay, which has customers higher up in the value chain, will help Crazeal attract more people to the site, he said.

There is no precedent for such kind of a tie-up between local units of the two companies anywhere else in the world, he said.

Crazeal has not put up any similar link on its website directing users to eBay, suggesting there is no quid-pro-quo.

Asked if Crazeal will be paying eBay to feature on the homepage or it will get money per transaction, Warikoo did not deny either possibility, saying he cannot comment on financial details of the deal.

"We felt this was an ideal partnership for us, a win-win situation for both the brands," eBay Head of Business Development and Advertising Sales Prashant Kumar said.

The non-exclusive tie-up, which does not involve any equity changing hands, is limited only to the travel and local services category and the two websites continue to compete in overlapping categories that they are present in, Warikoo said.

The tie-up is for at least one year, he said.

Both Warikoo as well as eBay did not specify any targeted numbers on the traffic or business front.