#Alibaba is in talks with #Micromax for stake sale

Alibaba is in talks with Micromax for stake sale. China’s leading online retailerALIBABA GROUP Holding Ltd along with consortium of investors includes Ant Financial which owns the payment platform Alipay, is in talks with Micromax Informatics, makers of Micromax for significant stake. The deal is tipped worth to be $1 billion.

Once the deal is through with legal authorities,ALIBABA will invest $500 – $600 million of fresh capital in Micromax. Remaining $400 million will be from secondary market whereALIBABA will take over from existingINVESTORS like Sequoia Capital and others.

Alibaba plans to push their services and operating software through Micromax devices. This would be second bigINVESTMENT in the country by the Chinese major Alibaba after its payment company Alipay Singapore E Commerce P Ltd picked up a stake in PayTM in February 2015. Alibaba has developed its own operating system called Aliyun, plans to push the technology through Micromax in India.