Alibaba In Talks To Pick Up 20% Stake In Micromax [$6bn Valuation!]May 8, 2015 2015-05-08 15:48
Alibaba In Talks To Pick Up 20% Stake In Micromax [$6bn Valuation!]
China’s Alibaba Group is in talks with Indian mobile manufacturer Micromax to buy a 20% stake in the company with an investment of approximately $1.2 billion dollars.
The move with give Alibaba a foothold in the Indian smartphone market, which is among the fastest growing in the world, allowing it to tap into the Internet boom.
The deal if completed will value India’s second largest smartphone manufacturer at up to $6 billion, higher than the valuation SoftBank was willing to put on the company.
Apparently Micromax and Alibaba began engaging in talks after discussions with investors from SoftBank stalled. It should be noted that SoftBank is the largest investor in the Alibaba Group.
At this point of time there’s a lot of promise for a company like Alibaba to get into the Indian smartphone market, with e-commerce, payments and other such sectors absolutely booming.
Controlling the smartphone is owning the access to the Internet in India, with largest chunk of netizens using the handheld devices to get online.
While the founders of Micromax may indeed be looking to sell a part of the company, CEO Vineet Taneja countered claims that one of the five founders was on their way out.