Tag Archives: Alibaba

Flipkart raises $1.4 billion in a bid to go head-to-head with Amazon

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India’s largest ecommerce site Flipkart has recently closed a massive funding round of $1.4 billion from Microsoft, eBay, and Tencent. It has also acquired eBay India. According to sources, the new funds will be used to strengthen Flipkart’s firepower to tackle major players like Amazon and Alibaba. Talks are also rife that Flipkart is planning to merge with local rival Snapdeal, which is backed by Japan’s Softbank. If the merger between Flipkart and Snapdeal finally occurs, it will soon become a three-way fight between Amazon, Flipkart, and Paytm, which has Alibaba as its biggest stakeholder. India’s ecommerce market is the second largest in the world next to China, and projected to be worth $47 billion by 2020.

Alibaba acquires Wandoujia

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Chinese ecommerce giant Alibaba bolsters its mobile business by acquiring Wandoujia, a popular Chinese Adroid app store. The deal is pegged to be valued around $200 million. According to Beijing-based Analysys International, Wandoujia has a 6% market share and ranks as the fifth largest Android app store in China. The acquisition will help Alibaba gain a better foothold on the mobile app distribution market in China and it will help the company engage and interact with local mobile consumers. Additionally, the Wandoujia app store can be used to market Alibaba’s analytics service Umeng app, video service Youku Tudou, and others. The deal pits Alibaba against its rival Baidu, which has captured 27.6% of the app distribution market and owns 91 Wireless, one of China’s top three app stores.

The future of mobility

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The recent partnership between Apple and Didi Chuxing underscores the changing market dynamics in today’s auto industry. Consumers have started to shift from traditional car ownership to ride sharing, while tech companies are investing heavily in autonomous driving technologies in the hopes to make the roads safer and traveling more convenient. It’s a combination of these trends that has created a market conducive for partnerships and investments. In addition to Apple’s investment in Didi, other companies have recently partnered up, either to take on Uber or to explore the possibilities of autonomous cars. General Motors invested in Lyft, who has teamed up with Didi, Ola and Grab. Google has partnered with Fiat Chrysler Automobiles. The Chinese rivals Alibaba and Tencent have both invested in Didi. In short, this market consists of many alliances and these partnerships will surely unlock new transportation experiences for consumers.

Alibaba’s investment spree

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Known for its aggressive investment policy, cash-rich Alibaba has made headlines with billion-dollar deals on both domestic and international grounds. Last week, the Chinese ecommerce giant invested $1.25 billion in Ele.me, a Shanghai-based food delivery service. It also paid $1 billion to acquire a controlling stake in Lazada, Southeast Asia’s top ecommerce platform. The deals happened a few months after Alibaba acquired Hong Kong-based newspaper South China Morning Post for $226 million. According to analysts, Alibaba targets to reach 6 trillion yuan in gross merchandise value (GMV) per year by 2020. We expect to see more investments from Alibaba in the coming months.