{"id":1309,"date":"2016-06-14T12:18:00","date_gmt":"2016-06-14T12:18:00","guid":{"rendered":"https:\/\/www.thirdeyesight.in\/?p=1309"},"modified":"2022-08-31T04:50:55","modified_gmt":"2022-08-31T04:50:55","slug":"after-festive-cheer-grim-reality","status":"publish","type":"post","link":"https:\/\/myechoproject.com\/TES\/after-festive-cheer-grim-reality\/","title":{"rendered":"Alibaba in investment talks with Delhivery and Xpressbees Logistics"},"content":{"rendered":"\n<i>Aditi Shrivastava &amp;Madhav Chanchani, The Economic Times<br>\nBengaluru, 14 June 2016<\/i><\/p>\n<div class=\"row\">\n<div class=\"col-sm-4\">\n<p class=\"mt-3\"><img decoding=\"async\" data-src=\"https:\/\/www.thirdeyesight.in\/wp-content\/uploads\/2022\/08\/alibaba-hq.jpg\" class=\"img-fluid d-block lazyload\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\"><\/p><\/div>\n<div class=\"col-sm-8\"><p class=\"mt-3\">Alibaba Group Holdings is\nlooking to buy, or invest in, an Indian logistics company specialising\nin deliveries for online retail players, and towards this end has held\ntalks with Delhivery and Xpressbees Logistics, according to two people\naware of the development. <br>\n<br>\nThe Chinese company is also chalking out a plan to get Paytm to spin\noff its marketplace business and plans to top it up with more capital,\nsaid a third source. Alibaba and its affiliate Ant Financial together\nown about a 40% stake in the Noida-based company. <p><\/div><\/div>\n<p>\nThese moves are part of an effort by Alibaba to build what founder Jack\nMa calls the &#8220;iron triangle&#8221; of businesses in ecommerce, payments and\nlogistics, and position it to challenge dominant incumbents Flipkart\nand Amazon. <\/p>\n<p>Paytm and Xpressbees, which is based in Pune, declined to comment.\nSahil Barua, the CEO of Gurgaon-based Delhivery, did not reply to an\nemail seeking comment. <br>\n<br>\nTimes Internet, a part of the Times Group which publishes this\nnewspaper, is an investor in Delhivery along with Tiger Global\nManagement and Nexus Venture Partners. In response to questions from\nET, Alibaba said in a statement that it sees &#8220;tremendous opportunities&#8221;\nin India. &#8220;We are absolutely committed to developing in this market for\nthe long term,&#8221; it said. <br>\n<br>\nAlibaba is likely to buy a majority or a significant minority stake in\na logistics company, which will give it a major say in operations, said\none of the sources cited above. The investment will be decided in 4-6\nmonths, once Alibaba is ready to launch its horizontal marketplace\nplatform in India. <br>\n<span style=\"font-weight: bold;\"><br>\n<\/span>Both Delhivery and XpressBees already work\nwith Paytm&#8217;s marketplace as third-party logistics and eKYC partners.<span style=\"font-weight: bold;\">&nbsp;<\/span><\/p>\n<p><span style=\"font-weight: bold;\">Securing\ncontrol over logistics is important because infrastructure comprising\nroads, storage and vehicular assets, as well as skills, regulations and\nsystems are relatively under-developed in India, said Devangshu Dutta,\nCEO of retail consultancy Third Eyesight. <br>\n<br>\n&#8220;Major players such as Amazon, Alibaba, Flipkart have to take direct or\nindirect control to ensure that their logistics capabilities evolve\nahead of their own business growth curve,&#8221; he said.&nbsp;<\/span><\/p>\n<p>Top executives from Delhivery and XpressBees have\nmet the team which Alibaba has set up for the India entry. This group\nis led by Alibaba&#8217;s Global Managing Director K Guru Gowrappan and\nBharati Balakrishnan, the first top executive hired by Alibaba to build\na consumer-facing business in India. Alibaba executives currently work\nout of Paytm&#8217;s headquarters. <img decoding=\"async\" data-src=\"..\/images\/alibaba-india-logistics.jpg\" alt=\"\" style=\"width: 40%; height: auto; float: right;\" hspace=\"10\" vspace=\"5\" src=\"data:image\/svg+xml;base64,PHN2ZyB3aWR0aD0iMSIgaGVpZ2h0PSIxIiB4bWxucz0iaHR0cDovL3d3dy53My5vcmcvMjAwMC9zdmciPjwvc3ZnPg==\" class=\"lazyload\"><br>\n<br>\nDelhivery was estimated to be valued at Rs 2,000 crore during its last\nfunding round. SAIF Partners and IDG Ventures are among the investors\nin Xpressbees, whose valuation is not known. <br>\n<br>\n&#8220;They are putting their strategy in place. Fundamentally, they will buy\nand start with Paytm&#8217;s online retail business, because a deal with\nFlipkart is not happening right now as they feel it is very expensive.\nThey will get a logistics partner to build a network like Amazon, which\nis very critical,&#8221; said a source briefed about Alibaba&#8217;s plan. <br>\n<br>\nBesides owning a stake in Paytm, Alibaba owns around 5% of Delhi-based\nonline marketplace Snapdeal. It held investment talks with Flipkart,\nbut the two companies were not able to reach an agreement on valuation\nand terms. Alibaba and Paytm are working out the contours of the\ncorporate structure of the marketplace entity, where 100% foreign\ndirect investment is allowed as per regulations announced by the\ngovernment in March. <span style=\"font-weight: bold;\"><br>\n<\/span><br>\n&#8220;All payments will be moved to the payments bank and ecommerce will be\na separate entity which Alibaba will invest in again. We will see some\nannouncements over the next three to six months,&#8221; said a person briefed\nabout the plan. As India becomes a crucial battleground for the world&#8217;s\ntwo largest online retailers, they are deploying contrasting strategies\nin an ecommerce market that Internet and Mobile Association of India\nestimates will be worth Rs 2.1 lakh crore by December 2016. While\nAlibaba has made strategic investments, Amazon India is growing\norganically. <br>\n<br>\nAmazon ended 2016 with net sales of $107 billion. Alibaba closed its\nfinancial year in March 2016 with revenue of $15.7 billion. <br>\n<br>\nWinning in India has become critical for Amazon, after it lost out in\nChina to Alibaba. Last week, Amazon founder Jeff Bezos announced that\nhis company will invest another $3 billion in India, taking the total\ncommitment to around $5 billion, putting the spotlight on Alibaba&#8217;s\nIndia plans. <span style=\"font-weight: bold;\"><br>\n<\/span><br>\nAlibaba is also entering India at a time when funding options for local\nplayers have dried up, and sales growth is flattening as online\nretailers pull back on discounts. This gives it an opportunity to\ncherry-pick assets in the country. India is also important for\nAlibaba&#8217;s push to globalise its customer base, as it looks to get half\nof its revenue from overseas by 2020 as compared 20%. In April, Alibaba\nacquired a majority stake in Southeast Asian online retailer Lazada for\n$1 billion when it was reportedly running out of money.<\/p>\n<p><i>(Published in <a href=\"http:\/\/economictimes.indiatimes.com\/industry\/services\/retail\/alibaba-in-investment-talks-with-delhivery-and-xpressbees-logistics\/articleshow\/52737808.cms\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: bold;\">The\nEconomic Times<\/span><\/a>)<\/i>\n<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Aditi Shrivastava &amp;Madhav Chanchani, The Economic Times Bengaluru, 14 June 2016 Alibaba Group Holdings is looking to buy, or invest in, an Indian logistics company specialising in deliveries for online retail players, and towards this end has held talks with Delhivery and Xpressbees Logistics, according to two people aware of the development. The Chinese company [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"content-type":"","footnotes":""},"categories":[3],"tags":[],"class_list":["post-1309","post","type-post","status-publish","format-standard","hentry","category-press-quotes"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Alibaba in investment talks with Delhivery and Xpressbees Logistics - Third Eyesight<\/title>\n<meta name=\"robots\" content=\"index,follow\" \/>\n<link rel=\"canonical\" href=\"https:\/\/myechoproject.com\/TES\/after-festive-cheer-grim-reality\/\" \/>\n<meta property=\"og:locale\" content=\"en_GB\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Alibaba in investment talks with Delhivery and Xpressbees Logistics - Third Eyesight\" \/>\n<meta property=\"og:description\" content=\"Aditi Shrivastava &amp;Madhav Chanchani, The Economic Times Bengaluru, 14 June 2016 Alibaba Group Holdings is looking to buy, or invest in, an Indian logistics company specialising in deliveries for online retail players, and towards this end has held talks with Delhivery and Xpressbees Logistics, according to two people aware of the development. 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