alibaba

If sources are to be believed, China’s Alibaba has finally decided enter India's ever growing online retail industry and is already in talks with Snapdeal regarding the same. The Chinese company is apparently considering investing in Snapdeal if and even it decides to enter the online consumer market scene in India.

The company will most probably enter the business to consumer space in India and has initiated the talks regarding the same. Alibaba is currently worth over $165 billion at the end of its initial public offer. According to sources, both Alibaba and Snapdeal haven’t reached a conclusion yet.

Until now, the Chinese Company has only been connecting Indian merchants with overseas sellers and buyers. Alibaba will directly compete with market heavy weights like Amazon and Flipkart if it decides to enter the Indian online retail scene by aligning with Snapdeal. Though the Chinese firm might be considered a late entrant in the Indian market scene, it still has the advantage of cash (the company is expected to raise upto $ 25 billion this week in the IPO) and size- going by sales, Alibaba is hands down bigger than eBay and Amazon combined.

Snapdeal has been successful in raising a total of around $233 million in two rounds of investments this year and according to latest rumors, it could raise another $ 300 million in a potential round of fund raising. The Delhi based firm is currently valued at $1 billion.

Earlier, last month news came out that India's business tycoon Ratan wants to invest in SnapDeal.

According to sources from the investment banking sector, the Delhi based firm, which is also one of India’s largest growing online marketplace, has also caught the attention of some other Asian conglomerates which include communications provider SoftBank and Rakuten, Japan’s largest ecommerce company. Rakuten does emerge as one of the prime contenders in the investment race for Indian Internet Commerce scene going by its aggressive track record of acquisitions this year.

Alibaba recently launched a portal for the United States consumers in its home market which has resulted in a direct fight with Amazon and this fight will only intensify when Alibaba enters the consumer space in India after a period of about four years in growing business to business commerce.

 

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