Aug. 4 – One of China’s top e-commerce companies, Alibaba, is in talks to set-up a Indian joint venture to extend the reach of the brand in its second biggest overseas market.
“The most likely partners to be involved in the Indian JV are those that we are now cooperating with,” Chief Executive David Wei was quoted as saying by IANS. “I also don’t want to pursue a majority stake in the JV.”
He said: “We are currently talking with them, it will definitely be a joint venture, and Alibaba does not seek to be a controlling stakeholder.”
Alibaba’s JV in India will be patterned after its venture with Japanese mobilephone and Internet company Softbank.
The company has always been quick to adapt to the local and global trade needs of its SME clientele and cutting the need for a middle-man by allowing suppliers and buyers to deal with each other directly.
Since the launch of the Alibaba’s assistance program in 2007 called “Ali-loans” an estimated 1,400 SMEs have been allowed to loan a total of more than RMB2.6 billion.
“The Ali-loan program aims to facilitate a total of RMB6 billion yuan in loans by the end of 2009, with each individual loan being capped at 2 million yuan,” the company said in a statement.
The Hong-Kong listed Alibaba Group was founded by Jack Ma in 1999 and also includes top names such as Taobao, Alipay, Alisoft and Yahoo! Koubei.