Jinnai Wealth Management：Ali invests in the Indian payment platform, is it far from investing in Flipkart？

According to the news, Paytm E-Commerce, the newly established Indian online retailer, will raise $ 200 million, and this round of financing will be led by Alibaba.Paytm is the largest payment platform in India, and India is the last global marketJinnai Wealth Management. Alibaba’s investment again will undoubtedly explain its value to this market. With Amazon’s continuous attack on the Indian market, Ali invests in IndiaI am afraid that the largest TV FLIPKART time is not far away.

For Amazon and Ali, the Indian market cannot be lost

India has developed into the world’s largest e -commerce market, and its degree of development surpassed the United States. It is precisely because Amazon’s emphasis on the Indian market was not enough that it caused it to gradually be marginalized in the Indian market, and the strong opponent of Alibaba rose.At present, Amazon’s market value is about $ 380 billion, while Alibaba’s market value is about $ 25 billion. The two are the world’s largest e -commerce.

After winning the largest e -commerce share of the Indian market, Alibaba is striving to go to overseas marketsMumbai Stock Exchange. In developed markets such as Europe and the United States, Amazon has occupied an advantage. It is not easy to enter Alibaba.The market pattern, so Alibaba, like other Indian companies, also places its main goal in India, a high -speed growth in India, and is expected to become the world’s second largest e -commerce market.Pune Stock

However, so far, Alibaba has not directly entered the Indian market, but indirectly entered the market by investing in India’s second largest e -commerce Snapdeal and Paytm.Perhaps Alibaba’s thinking from Amazon’s failure in the Indian market can get results. Entering the market directly is not conducive to it, and cooperation with Indian e -commerce familiar with the local market is a better way.

Of course, Amazon also recognizes the importance of the Indian market, and does not want to repeat the failure of the Indian market again, but provides Alibaba a chance to threaten itself.Unlike Alibaba, Amazon competes with Indian e -commerce companies directly in the Indian market. With its strong investment, it has achieved great success last year, surpassing India’s second largest e -commerce Snapdeal,Flipkkart, the largest e-commerce company in India, the largest sales festival in India last year-Amazon and Flipkart, who broke out who was the first saliva war, but from the data point of view, the number of transactions on both sides was close, but the transaction of the transaction wasFlipkart is still the first.

Investment Flipkart helps Alibaba compete with Amazon

According to analysis, Ali has estimated that Paytm, the largest Indian payment platform, has accounted for half of India’s second largest e -commerce Snapdeal investors through multiple rounds of investment.His influence, but given that Snapdeal’s current share in the Indian e -commerce market is to lag behind Flipkart and Amazon, it is probably unable to help Alibaba build sufficient advantages in the Indian market.

In November 2016, it was estimated that Amazon received about 28%of the total amount of Indian e -commerce commodity transactions (GMV), and the share of Indian local e -commerce Flipkart was 43%. The two accounted for the Indian e -commerce market.With more than 70 % of the market share, Snapdeal can only be shared from the remaining 30 % of the remaining shares, and Amazon’s fast market share is still rising. Think about it two years ago that Amazon was far behind Flipkart and Snapdeal.Woolen cloth.

In fact, Alibaba has already realized that this situation is not conducive to it, so it has been rumored last year that it intends to invest in Flipkart, but due to the influence of various factors, it has not been able to achieve it. Now with Amazon’s continued investment, the Indian market competition has intensified.It has announced that its investment in the Indian market has increased by $ 5 billion so far, resulting in a poor situation in Flipkart and Snapdeal.FLIPKART was even under the valuation of several institutions last year. A common fund managed by Morganstanleyhas at the end of last year reduced its valuation to US $ 5.44 billion, which was significantly reduced by a significant decline from $ 15 billion a year ago a year ago.Two -thirds.

Flipkart also needs to introduce funds for support. So far, neither it and Snapdeal have not achieved profitabilityAgra Stock. The fiscal year in 2014/15 is as high as (23.06 billion rupees) of 330 million US dollars.You can only introduce foreign funds.

For Alibaba, if Flipkart’s market share continues to be lost to a certain degree, it is not easy to recover the competitive advantage of Amazon, so investing in FLIPKART at this time should be a very suitable time.Of course, Alibaba may not have any other considerations, and there are rumors that Alibaba intends to directly enter the Indian market and compete with Amazon.

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