China’s Alibaba Group Holding Ltd is in talks with Micromax to buy one-fourth stake in the Indian phonemaker, according to The Economic Times report.
The Economic Times report quoted three persons who are aware of the matter and said that Micromax may sign an agreement to sell a fourth of itself to China’s Alibaba for about $700 million (Rs 4,200 crore). This will be the first such stake purchase in an Indian phonemaker by an overseas investor.
Alibaba has been looking at acquisition of Indian e-tailers that have a large customer base. Alibaba Group has several small businesses and through its platform it sells goods ranging from spices to chocolates to tea.
In January this year, Alibaba signed a memorandum of understanding with industry body CII for greater business engagement between SMEs in India and China.