Alibaba Pauses All Fresh Investment Plans For India Amidst Coronavirus

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Alibaba, China’s tech giant pauses all fresh investment plans for India. It is highly unlikely to sign any new deals with Indian companies. This is due to the rising tension between the two nations. However, India has also banned several Chinese brands and all Chinese products have to undergo severe scrutiny. The news is accurate as per sources. The Chinese company fuels the growth of several Indian startups. However, as per sources, it is not going to put in funds for any more expansion in India. The hold is at least for six months now. However, it can expand in the future, we are not sure yet. But it is not planning to exit any ongoing investment. And it will also not reduce its stakes in the Indian market. The sources however like to stay anonymous as the information is confidential.

Alibaba And Its Investments In India

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Alibaba pauses all fresh investments for India. Image Source: Moneycontrol

Alibaba Capital Partners and its affiliates Ant group invest $2 billion in Indian companies. This is ever since 2015. As per the data of the Pitchbook, it also participates in funding rounds of $1.8 billion. This is the track record of its private market financing. Zomato raises $150 million capital from this company. And in January it raises only around $62 million from a state investment in Singapore. The firm is known as MacRitchie investments and it is a part of Temasek Holdings. Zomato receives the first tranche of $50 million in January. However, due to government restrictions, the rest got delayed.

Pausing investment plans can cause trouble for several Indian companies. Companies such as Paytm, Zomato, and Big Basket will face huge losses. The group is, however, planning for an Initial Public Offering on Tuesday. It will address the challenges it faces in India. The Company says in its filing that certain investment rules in India change many things. It causes further evaluation of the timing of its additional investment in Zomato.

Challenges For The Tech Giant

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Company head demands for clarity. Image Source: Lenexweb

Chinese Investors invest $166 million in Indian startups. It was between January to July. However, a year ago, it was $197 million. Chinese investors invest a total of $641 million in Indian startups. This is the record of last year. Due to government restrictions, the tech giant declares that it not going to invest freshly in Indian companies. It is going to pause all its investments until there is more clarity from the government.

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