Deep-pocketed Alibaba can thrive in India

THE world's biggest e-retailer, Alibaba, is showing keen interest in investing in India's fledgling e-commerce market. Jack Ma, founder of the giant US$248 billion Chinese company, has visited India twice in the past six months, met and was impressed by Prime Minister Narendra Modi, and had said during his first visit to the country last November that Alibaba would "invest more in India, work with Indian entrepreneurs, India technologists to improve the relationship of the two nations".

So far Alibaba has announced in February that Ant Financial Services - part of the Alibaba Group - was taking a 25 per cent stake in One97 Communications, the parent of mobile commerce firm Paytm.

In March a possible deal with India's second largest e-retailer Snapdeal broke down over valuation. According to reports, Snapdeal was seeking a valuation of US$6 billion to US$7 billion for fresh funds worth at least US$600 million, while Alibaba was valuing Snapdeal in the range of US$4-5 billion.