Micromax stake sale talks with China’s Alibaba fail: Report

Follow Us

China’s ecommerce giant Alibaba has reportedly ended talks with Micromax, the country's second largest smartphone maker, to acquire a stake of up to 20 percent, at a valuation of more than $3 billion.

According to a FT report, the Chinese company has further delayed other investment plans in India amid problems in its home market, including regulatory probes over fake merchandise sold on its sites.




Alibaba is currently grappling with China's slowing economy and regulatory probes. The company, which recently increased stakes in local start-ups PayTM and Snapdeal, had plans to invest in entertainment and services businesses in India, besides exploring minority stake in Micromax, the report added.

Alibaba has so far spent $680 million for a 40% stake in Indian payments start-up PayTM, and picked up a smaller holding in Snapdeal.

“They have become much less aggressive. As well as Micromax, they had plans to invest in entertainment and services businesses in India but they are fine without it for now,” a person familiar with the development told the publication.

The Chinese company it is now taking a gradual approach in India, and still keen on expanding operations in India.
Micromax's four founders — Rahul Sharma, Rajesh Agarwal, Sumeet Kumar and Vikas Jain — own a little less than 80 per cent of the company. The handset maker earlier this year forced out the Chairman Sanjay Kapoor on charges of alleged financial irregularities.

However, Kapoor, had then said his "termination" was timed to deny him stock options (ESOPs), and is contesting the same and has threatened to sue the firm.

Recent Comments

SCKPA :

Open network site malfunctioning for a long time of approx 2 years.

Airtel customers will now be able to see network coverage…

SCKPA :

I have used and currently using single sim of BSNL. Same issue. Without towers how can a operator cover most…

Jio, Airtel, and Vodafone Idea See Subscriber Losses, While BSNL…

Sujata :

This thing was supposed to be implemented from 1st October, 2024.

TRAI Directs Telecom Providers to Display Coverage Maps on Websites

rks :

Good Move. Will help. Today itself I came to my village in Bihar and there is one idea tower for…

TRAI Directs Telecom Providers to Display Coverage Maps on Websites

. :

Jio data consumption is 100 percent after watching tv for just 20 min but bsnl i can watch a full…

Jio, Airtel, and Vodafone Idea See Subscriber Losses, While BSNL…

Load More
Subscribe
Notify of
0 Comments
Inline Feedbacks
View all comments