World’s second largest ecommerce firm, China’s Alibaba is working hard to enter into the Indian market. Mobile payment firm, Paytm which has 25% shareholding by Alibaba, launched a three day fashion sale, sending strong message across the ecommerce world.
Reports also indicate that the China bound firm with inventory model has renewed its once aborted stake holding attempt in Snapdeal.
Alibaba along with Taiwan’s handset sourcing firm Foxconn are making fresh discussion with Snapdeal for a strategic investment.
Certainly, Paytm’s ecommerce entry will make pressure on Snapdeal to be a soft bargainer. Last time, according to Alibaba sources, high price was the deal breaker.
For Snapdeal, capital infusion from cash rich foreign firms will make it to compete with Flipkart and Amazon. Japanese investment firm Softbank has already has a reasonable investment in Snapdeal. The Japanese firm has significant share holding in Alibaba as well.
Already, the Chinese e commerce giant has nearly ten thousand small scale suppliers to support its global market operations.