Chinese e-commerce giant, Alibaba, is reportedly in talks with Micromax to invest $1.2 billion in Micromax to acquire a 20 percent stake. Micromax is India's second largest smartphone vendor after Samsung.
The deal, if completed, could see Alibaba investing $1.2 billion (about Rs 7,673 crore) for a 20% stake in Micromax, valuing the company at up to $6 billion (about Rs 38,364 crore), Reuters reported.
Alibaba has been aggressive in India, which is one of the fastest growing smartphone markets in the world. With the e-commerce boom, Alibaba also invested in mobile wallet provider, Paytm.
"Many investors have shown interest in picking up a stake in Micromax. There has been talks with Alibaba too, I cannot comment more than that," a Micromax executive said.
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During Jack Ma's visit to India in March, the company had tweeted "Jack meets Prime Minister Narendra Modi to discuss how Alibaba can help empower small businesses in India."
Micromax started up in India in 2008, and its affordable, large-screen phones are now the country's most popular after Samsung Electronics Co Ltd smartphones.