rtmark
LearnBonds.com

Alibaba Group Holding Ltd: Strength In Alipay’s India Ambitions

Alibaba group holding ltd

Alibaba Group Holding Ltd (NYSE: BABA) financial arm Alipay is inching close to a deal for buying 25% stake in India’s largest mobile phones manufacturer Micromax. The Chinese online financial company as part of a consortium reportedly values Micromax at around $4 to $5 billion according to people close to the talks.

Alibaba group holding ltd (NYSE:BABA)

Need for a divergence of views and assurances to the lead investor is believed to have been the main reason for Alipay pursuing stake in Micromax through the consortium. The deal should see the injection of more cash into Micromax businesses as one of the ways of scaling the business. The deal is also an indication of how Alipay is trying to expand its revenue streams away from Alibaba Group Holding Ltd (NYSE:BABA) e-commerce business.

Alipay aims for mobile

Alipay could also use the opportunity to resurrect phone wars with Xiaomi, which has been expanding its market reach with a range of products specifically targeting emerging markets. Alipay, which is Alibaba Group Holding Ltd (NYSE:BABA)’s main payment system in its online platforms, is also reportedly planning to go public a move that will see it offload some shares to the public.

Should the deal go through, it will be Alibaba Group Holding Ltd (NYSE:BABA) group’s second investment in one of the fastest growing emerging markets in the world. Alipay has already expanded its wings in India’s payment space with the investment of $575 million in Paytm, earlier in the year. For the deal to be sealed a number of issues will have to be ironed out according to people close to the talks.

India is a key market

The bone of contention has to deal with the direction Micromax ought to follow heading into the future. The fact that Micromax generates nearly 70% of its revenues from offline and traditional retail channels makes it a viable model heading into the future, according to the promoters. However, the new guard led by the company’s chairman Sanjay Kapoor prefer the company venturing more into online sales.

The deal by Alipay affirms Alibaba Group Holding Ltd (NYSE:BABA) CEO, Jack Ma, belief of the importance of India’s e-commerce and mobile segment that continues to grow fast, much to the excitement of many multinationals.

Trusted & Regulated Stock & CFD Brokers

Rating

What we like

  • 0% Fees on Stocks
  • 5000+ Stocks, ETFs and other Markets
  • Accepts Paypal Deposits

Min Deposit

$200

Charge per Trade

Zero Commission

Rating

64 traders signed up today

Visit Now

75% of investors lose money when trading CFDs.

Available Assets

  • Total Number of Stocks & Shares5000+
  • US Stocks
  • German Stocks
  • UK Stocks
  • European
  • ETF Stocks
  • IPO
  • Funds
  • Bonds
  • Options
  • Futures
  • CFDs
  • Crypto

Charge per Trade

  • FTSE 100 Zero Commission
  • NASDAQ Zero Commission
  • DAX Zero Commission
  • Facebook Zero Commission
  • Alphabet Zero Commission
  • Tesla Zero Commission
  • Apple Zero Commission
  • Microsoft Zero Commission

Deposit Method

  • Wire Transfer
  • Credit Cards
  • Bank Account
  • Paypall
  • Skrill
  • Neteller

Rating

What we like

  • Sign up today and get $5 free
  • Fractals Available
  • Paypal Available

Min Deposit

$0

Charge per Trade

$1 to $9 PCM

Rating

Visit Now

Investing in financial markets carries risk, you have the potential to lose your total investment.

Available Assets

  • Total Number of Shares999
  • US Stocks
  • German Stocks
  • UK Stocks
  • European Stocks
  • EFTs
  • IPOs
  • Funds
  • Bonds
  • Options
  • Futures
  • CFDs
  • Crypto

Charge per Trade

  • FTSE 100 $1 - $9 per month
  • NASDAQ $1 - $9 per month
  • DAX $1 - $9 per month
  • Facebook $1 - $9 per month
  • Alphabet $1 - $9 per month
  • Telsa $1 - $9 per month
  • Apple $1 - $9 per month
  • Microsoft $1 - $9 per month

Deposit Method

  • Wire Transfer
  • Credit Cards
  • Bank Account
Users should remember that all trading carries risks and users should only invest in regulated firms. Views expressed are those of the writers only. Past performance is no guarantee of future results. The opinions expressed in this Site do not constitute investment advice and independent financial advice should be sought where appropriate. This website is free for you to use but we may receive commission from the companies we feature on this site.
Avatar

Viraj loves to write and express his views on anything related to Finance, Crypto, or Fintech. He has been covering Finance & Crypto for more than five years now. He likes Tesla. He also writes on Healthcare, and Technology among other stuff.