Alibaba making moves to buy ShopClues
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Chinese internet giant Alibaba has been discussing the acquisition of Indian online marketplace ShopClues, which is valued at more than US$1 billion.
Alibaba wants to merge the marketplace of Paytm, in which it has a stake, with larger rival ShopClues, reports The Times of India. The newspaper says Alibaba has several acquisition targets as it aims to firm up its presence in India against Amazon.
Based in Gurgaon, ShopClues has raised about $250 million with investors including GIC of Singapore, Helion, Nexus Venture Partners and Tiger Global. It is positioned as an online flea market, selling cheaper and mostly unbranded merchandise.
Former Zynga and Yahoo executive K Guru Gowrappan, who has been mandated to chart Alibaba’s growth in Asian markets (excluding China), is driving the merger-and-acquisition talks with the senior management of ShopClues, sources say.
Meanwhile, Alibaba group, which holds a stake of about 40 per cent in Paytm, has started the process to separate the Noida-based company’s core payment business and smaller commerce business into two separate entities.
Questions & Answers
Q.What is the primary motivation for Alibaba considering the acquisition of ShopClues?
What is the primary motivation for Alibaba considering the acquisition of ShopClues?
Alibaba aims to strengthen its presence in India, directly competing with Amazon. This potential acquisition would help Alibaba consolidate its position in the Indian e-commerce market.
Q.What is the reported strategy for integrating ShopClues if the acquisition proceeds?
What is the reported strategy for integrating ShopClues if the acquisition proceeds?
Reports suggest Alibaba intends to merge ShopClues' marketplace with that of Paytm, a company in which Alibaba already holds a stake. This would combine their e-commerce operations in India.
Q.Which executive is reportedly leading the discussions for Alibaba regarding this potential merger?
Which executive is reportedly leading the discussions for Alibaba regarding this potential merger?
K Guru Gowrappan, a former Zynga and Yahoo executive, is driving these merger and acquisition talks. He is specifically mandated to chart Alibaba's growth across various Asian markets, excluding China.
Q.What action is Alibaba Group taking regarding its investment in Paytm?
What action is Alibaba Group taking regarding its investment in Paytm?
Alibaba Group has begun separating Paytm's core payment business from its smaller commerce business. This will create two distinct entities from the Noida-based company.
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