+1-888-308-5802     
Industry Categories News Contact Us

Alibaba challenges rivals in India e-commerce market with $5B JV

Author : Saif Ali Bepari | Published Date : 2018-08-20 

China’s Alibaba Group Holding Ltd has reportedly made plans to collaborate with one of India’s largest retailer, Reliance Retail Ltd, in a bid to compete with e-commerce giants Flipkart and Amazon that currently dominate the world’s fastest growing economy.

As per reliable sources, Alibaba would pour in about USD 5 billion in the new joint venture and would acquire a large stake in Reliance Retail Ltd, eventually creating a huge e-commerce giant in the digital market as well as expanding its business in Indian market.

According to The Times of India, an official meeting was held recently between Alibaba’s senior executives and Mukesh Ambani led RIL (Reliance Industries Limited), along with Kishore Biyani’s Future Retail and Tata Group. The meeting comprised discussions regarding the agreement that would create a large omnichannel retail firm via the joint venture which would eventually boost the company’s business in India.

As per Alibaba’s executive chairman, Jack Ma, the company is all set to invest about USD 5 to 6 billion and grab hold of about 50% stakes in Reliance Retail Ltd. This would eventually result in the formation of a new joint venture between Reliance Retail and Alibaba, and would reportedly be Alibaba’s largest investment in the Indian company.

Incidentally, the deal is crucial for Alibaba, as it holds 49% stakes in Indian e-commerce payment system and digital wallet company, Paytm, which reportedly was ordered by the Reserve Bank of India (RBI) to stop onboarding new customers.

However, sources familiar with the knowledge of the matter cite that Reliance Retail plans on making a similar model like Paytm, that would eventually allow Alibaba to take benefit of an effective e-commerce and digital wallet service in India.

Reliable reports state that Alibaba’s plans of investing 100 billion yuan over the next five years on developing a logistics network as a part of its global expansion plan.

About Author

Saif Ali Bepari

Saif Ali Bepari

Saif currently works as a content writer at Algosonline. A Computer Science graduate who has a zest for writing over coding, commenced his journey in the writing industry as a freelancer. Having had a prior freelance experience, he has tinkered with creative writing, technical writing, blog writing, editing, and copywriting. An ambivert by nature, his hobbies include reading, gymming, and taking long walks.

He can be contacted at- [email protected] | https://twitter.com/Saif_B17

Related News

Insight, CPPIB invest $500M in data recovery firm Veeam Software

Published Date: 2019-01-18         Author: Saif Ali Bepari

Veeam is leading the data management space currently, with over 60,000 partners and 325,000 customers. Insight Venture Partners & pension fund giant CPPIB, have reportedly invested $500M in backup & data recovery company Veeam Software. Veeam is one of the largest privately held software ... Read More

Saudi Aramco to issue bonds to finance the acquisition of SABIC

Published Date: 2019-01-13         Author: Saif Ali Bepari

* The petroleum & natural gas company is considering issuing bonds in order to finance the company’s acquisition of SABIC. * The deal would involve the acquisition of nearly all or all of the 70% stake in SABIC. Saudi Aramco, the Saudi Arabian national petroleum & natural gas com... Read More

Rockwell Automation seeks to acquire good Indian engineering companies

Published Date: 2018-11-15         Author: Saif Ali Bepari

Rockwell Automation, Inc., an American information products and industrial automation company, has reportedly announced its intention to acquire good systems integrators and engineering companies in India. Reports cite, the Milwaukee-based company is also looking to expand its operations and work... Read More

© 2019 Fractovia. All Rights Reserved