World Economy

Alibaba to Buy $1.2b Stake in India

Alibaba to Buy $1.2b Stake  in IndiaAlibaba to Buy $1.2b Stake  in India

Alibaba Group Holding is in talks with India’s Micromax Informatics to buy an about 20% stake in the smartphone maker, helping the Chinese e-commerce giant expand in one of the world’s fastest growing markets for the devices, several people with direct knowledge of the matter said, Reuters reported. The deal, if completed, would see Alibaba investing as much as $1.2b in Micromax, the second-largest smartphone brand in India by sales, and would value the company at up to $6b. India is the world’s third largest smartphone market and was the fastest growing in the Asia Pacific region in the third quarter of last year, according to industry research firm International Data Corporation. Micromax and Alibaba began talks on the stake sale after discussions with investors led by Japanese telecoms firm Softbank Corp stalled over differences in valuations, the sources said.