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Alibaba Group Holding, is planning to make a deal with Micromax Informatics in order to buy nearly 20 percent of its shares. The deal if finalized, will be an opportunity for Alibaba to elaborate their business in India. This will definitely help the Chinese e-commerce giant to grab the market of fastest growing country.
The deal is expected to sum-up with a total costing of about $1.2 billion that means Alibaba will invest that much amount in Micromax, which is at present the second largest smartphone based company in India. As India is world's third largest smartphone market place and fastest growing in Asia Pacific Region, it will be a better place for Alibaba to invest into.
According to the sources, both these firms started negotiating on the deal after discussions with investors led by Japanese telecoms firm Softbank Corp stalled over differences in valuations. But the sources of the deal has not been disclosed as the speaker is not authorized to speak a word on this ongoing deal.
"The Softbank talks are not officially over, but it'll be hard to get back on track," said one of the people. "The talks are centered around using Micromax devices as a platform to get into a serious business of its own in India," said one of the sources, referring to Alibaba.
With the invested money, on one hand where the capital of Micromax will increase, on the other side, will allow them to initialize themselves in new business segment i.e. personal computing. Talking about the foundation details of Micromax, it was started in the year 2008 which used to offer variety of smartphones to its users and attract them with alluring features.
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