Chinese tech giant Alibaba Group puts India investment plans on hold for six months

DY365
DY365
Published: August 27,2020 03:20 PM
DY365

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August 27, 2020: Chinese tech giant Alibaba Group has put on hold its plans to invest in Indian companies, amid souring business relations and rising political tension between India and China.

August 27, 2020: Chinese tech giant Alibaba Group has put on hold its plans to invest in Indian companies, amid souring business relations and rising political tension between India and China after the Galwan clash at the Line of Actual Control (LAC) on 15 June.





As per reports, Alibaba, which has fuelled the growth of several Indian start-ups, will not put in fresh funds to expand its investments in the country for at least six months. However, there are no plans to reduce its stakes or exit investments.



Alibaba’s decision could impact the fundraising plans of some of its Indian investee companies, which include payments firm Paytm, food aggregator Zomato, and e-grocer BigBasket.





According to a report, Preparing for its IPO, Alibaba affiliate Ant Group noted the challenges it faces, adding in its filing this week that change in foreign investment rules in India had led to a “further evaluation of the timing” of its additional investment in Zomato, the report said.



Ant Group has 30 per cent stake in the Paytm parent company, One97 Communications, and holds “significant influence” over it.





The report also noted that Indian start-ups are heavily funded by Chinese investors such as Alibaba and Tencent.