Alibaba is considered the largest e-commerce giant in all of China. The company is keeping this stellar reputation with their latest move of buying stake in the Indian smartphone Micromax. Just how much of a deal is Alibaba thinking about making? The numbers are not definite yet, but many are looking for Alibaba to invest around $1.2 billion into the company that is valued at around $6 billion.
Micromax is considered the second largest smartphone company in all of South Asia according to sales. The company has an 18% market share on the market. What makes this company so highly sought after is their use of technology in smartphones. However, despite high technology, these phones are reasonably priced for most people.
The company has been in business for the past decade and has developed tons of customer appreciation during this day. Those who choose Micromax often quote their 30 day battery backup guarantee, their standby phones that are available, their budget plans and the like for why they choose this particular company for their smartphone needs.
What Alibaba Hopes to Accomplish with Investing
Alibaba is wanting to ensure they are staying ahead of their competition, namely JD.com, hence the reason for expansion. The company hopes to start expanding their e-commerce into India as a way to ensure they are always dominating the market. The deal with Micromax, if it were to go through, ensures Alibaba is becoming a dominant e-commerce giant outside of China as well.