Articles

Alibaba eyeballing more-commerce companies in India

by Retta Matson Technology and Finance Writer

E commerce giant strengthens its position in India with acquisition of e-tilers.

After the report came out that Alibaba Group Holding Ltd buying Meru –a taxi startup of India. The company is now looking forward to acquire more e-tailers of India. The Chinese online firm is persuading into big players in Indian e-commerce companies having large customer base and robust merchant networks. Actually, the main discussion between the company’s chairman JackMa and Prime Minister of India Narendra Modi was on enhancement and support of small and medium businesses in the country.

A spokesperson of Alibaba Group said, “Alibaba investment strategy focuses on three aspects of our business: increasing user acquisition and engagement, improving customer experience and expanding our products and services.” Alibaba realizing the significance of the potential e-commerce sector of India, and planned to start 4 offices there. Company’s competitors in the country are Snapdeal, Flipkart and Amazon.

On the basis of consultancy firm research, PwC, e-commerce industry in India is expected to inflate to almost $22 billion till the end of current year, representing a 34% increase. This is a huge number as compared to prior year stats. According to Economic Survey of 2014-15, the e-commerce industry of India currently stands at $16.4 billion and is most likely to grow over 50% in the coming 5 years.

Remarkably, the growth took place after acquisition deal with Snapdeal misshapen. Alibaba group was already in talks with Snapdeal regarding investment of approximately $1 billion. Though, it dint take place because of home ground marketplace of India looking for extremely high valuations for the purchase of stake.

Furthermore, Alibaba has also promised a MOU with the Confederation of Indian Industry (CII) for the improvement and development of business partnerships with small businesses of India. Approximately 2 months ago, Ant Financial Services –a financial arm of Alibaba had announced buying 25% ownership in One97 Communications, which is the parent firm of Paytm.

The Chinese e-commerce major further said that its B2B online e-commerce platform serves for offering a global market to medium and small enterprises. “Our investment approach also involves supporting entrepreneurs in the development of innovative products and technologies.”

 Consistent strategies of Baba of expanding and making strides in India, Alibaba Group Holding had been seeking for MERU. As reported by executives of the company, they will announce the acquisition later this week. Meru is located in Mumbai, and a well-known organization of immature cab industry in India. Indian Value Fund have almost 80% of ownership in Meru and it will sell apportion to ensure Alibaba’s entry in the sector.

 

 



Sponsor Ads


About Retta Matson Advanced   Technology and Finance Writer

37 connections, 0 recommendations, 102 honor points.
Joined APSense since, March 19th, 2015, From South Brentwood Blvd, United States.

Created on Dec 31st 1969 18:00. Viewed 0 times.

Comments

No comment, be the first to comment.
Please sign in before you comment.