Alibaba Strengthens Its Position In India

The Chinese ecommerce giant is investing in Indian online selling enterprises as a part of its expansion strategy.

AliBaba Group Holding Ltd. has strengthened its position in India. Alibaba news disclosed that the organization seems ready to fight a proxy war against the American online selling giant, Amazon Inc. To do so, the Asian enterprise has invested in the rivals of Amazon.

The Hangzhou-based organization has invested in a number of Indian e-trading firms, such as Snapdeal and Paytm. It sponsored Snapdeal as a part of $500,000,000 round. Alibaba news today reported that the Chinese corporation took its first initiative with a stake in Paytm, a small player in the Indian mobile online selling sector. The company’s affiliate, Art Financial, has purchased shares worth $700,000,000 in Paytm’s parent company One97.

It is expected that the Chinese business might increase its stake in Paytm by 15%. Alibaba breaking news affirmed that the Indian mobile selling company is an Indian startup with around 80,000,000 digital wallets in the bag. Its investment in the two organizations has played a significant role in building its position in the online trading sector of the world’s second most populated country.

Market professionals believe that the organization’s financial contributions would prove to be beneficial for the Indian sellers, as it would allow them to reach the market of one of the largest economies in the world. Mr. Jack Ma has stated that Indian traders have become the second biggest sellers on his selling platform after residents of China.

Merchants selling a number of Indian products, specifically chocolates, spices and tea, have exceeded on Alibaba. Mr. Ma added, “I did not realize Indian chocolates were so popular.” He was basically implying that the huge Indian economy has various different great products to offer.

The Indian Market Research Bureau has claimed that in 2014, less than 40,000,000 people were purchasing goods online. That makes a tiny proportion of the 300,000,000 networking users in India. It is most likely if Alibaba ensures that its invested funds are utilized in the most effective manner, then it would soon be able to capture the Indian market.

The Chinese enterprise’s rival, Amazon, is also focusing on the Indian market and it has invested in warehouses across the Indian nation. The Washington-based company has previously inaugurated a 280,000 square foot warehouse near Hyderabad. This investment in the Indian online selling organizations would help improve its reputation in the region.

One could say that if the Chinese ecommerce giant’s funds were utilized in the most effective manner, then it would not only capture Amazon’s market share, but also enhance its potential to dominate the competitive world. It is all a matter of time when the circumstances will be revealed.

Alibaba’s executives should now take initiatives to penetrate further into the massive Indian marketplace.

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