(WSJ) Chinese e-commerce giant Alibaba Group Holding Ltd. and its financial-services affiliate have agreed to jointly invest about $575 million in India’s One97 Communications Ltd.’s online-payment and marketplace businesses, a person familiar with the matter said.
If the deal goes ahead, it would give Alibaba and Zhejiang Ant Small & Micro Financial Services Group a combined 30% stake in One97 and would value the New Delhi-based company at more than $2 billion, the person, who asked not to be named, told The Wall Street Journal.
A spokeswoman for Alibaba didn’t immediately respond to a request for comment. A spokeswoman for One97 said the company is in the process of raising money. “We will communicate as and when we complete the process,” she said.
The investment would be the Chinese group’s first in India’s small, but fast-growing, e-commerce industry, which has drawn substantial funding from Amazon.com Inc. of the U.S., Japan’s SoftBank Corp. and others betting that online shopping is set to boom in the world’s second-most-populous country.
Alibaba, which went public in the U.S. in September in the world’s largest initial public offering at $25 billion, mainly operates online marketplaces. Its financial-services affiliate runs Alipay, which provides online-payment services.