Alibaba to invest $1.2 billion in Micromax?


You’ve probably used one of Alibaba’s services before, most probably AliExpress (retail version of Alibaba.com) to purchase perhaps a phone.

The mother company of the very marketplace is apparently set to invest in India’s top homegrown smartphone maker in Micromax. Micromax enjoys a healthy 18% market share in its home country, and also has presence in Russia. Micromax’s market share is set to keep rising during the next few months; sub-brand Yu is only adding to th numbers.

If rumours are true, Micromax will soon be more at ease to make better phones by investing more in R&D. The scale of the rumoured to-be investment is a massive US$1.2 billion for a 20% share in the Indian company. Android Authority adds a valid point about the possibility of Alibaba wanting to get access to the growing list of Indian netizens.

If this deal does go through, Samsung will but have to face more nightmares in one of its biggest markets. Micromax phones are slowly but certainly getting more acceptability, a telltale sign that the company is indeed on the rise.

[Source]
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18 Comments

  1. balcobomber25
    May 10, 2015

    Interesting as they already own a minority share of Meizu. Meizu and Micromax both make some very good devices on their own, imagine if they worked together?

    • Zay
      May 11, 2015

      I think they would need to do a serious overhaul of Micromax reputation and name because here in the US, I only see Micromax as a cheap phone maker to avoid. Just saying.

      • balcobomber25
        May 11, 2015

        I don’t think they really care about their reputation in the US. For most of these companies US sales are never even considered in their forecasts. They care more about the markets in Asia, which accounts for nearly 60% of the world’s population. The smartphone markets in China and the US/Europe are starting to mature, the biggest growing markets are countries like India, Bangladesh, Indonesia, Vietnam, Thailand, Malaysia and Russia among others. Those are the countries that are most important for Chinese phone developers.

    • Suresh Ramalingam
      May 11, 2015

      “Meizu and Micromax both make some very good devices on their own, imagine if they worked together?”

      Micromax make devices?!!! That’s a laugh riot!!! Micromax are nothing but ‘handset Pimps’ and that too of a particularly dubious variety. Their after sales service is non existent because they have no expertise for the same. The words Micromax and R&D are mutually exclusive. The company has made money so far by exploiting import loopholes and because of the fact that india’s population being very large they have a larger pool of numbers to fool till people get wise!! Their modus operandi is now starting to feel the heat because of entry & direct participation by chinese mobile companies in india. If alibaba is really intent on investing in micromax then all I can say is that they need to have their head examined!!!

      • balcobomber25
        May 11, 2015

        Living outside of India I have no personal experience with them but everyone I know who does live there raves about the Micromax Canvas series as well as the Yu Yureka.

  2. vijay sud
    May 10, 2015

    Micromax has come a long way from being a mere trader in mobile components to its current rank in Indian mobile space.. but in order to go uo it must overcome its reputation for porest aftersale service of its products. Manufactured to a price often the Micromax mobiles fail within 1 year and horror stories of people made to run from pillar to post are legend..no respectable mobile vendor would want..my personal story of no mobile 34 days after display failure in my Micromax A106.only firms up my resolve never to buy Micromax again.so path of Micromax to top of Indian market is not going to be a cake walk..

    • JeffAshe
      May 11, 2015

      “Micromax has come a long way from being a mere trader in mobile components to its current rank in Indian mobile space…”

      Indeed, Micromax has gone from trading in mobile components to trading in phones that are designed and made by the Chinese. Remarkable progress indeed but still just a trading company.

  3. balcobomber25
    May 10, 2015

    Interesting as they already own a minority share of Meizu. Meizu and Micromax both make some very good devices on their own, imagine if they worked together?

    • Zay
      May 11, 2015

      I think they would need to do a serious overhaul of Micromax reputation and name because here in the US, I only see Micromax as a cheap phone maker to avoid. Just saying.

    • balcobomber25
      May 11, 2015

      I don’t think they really care about their reputation in the US. For most of these companies US sales are never even considered in their forecasts. They care more about the markets in Asia, which accounts for nearly 60% of the world’s population. The smartphone markets in China and the US/Europe are starting to mature, the biggest growing markets are countries like India, Bangladesh, Indonesia, Vietnam, Thailand, Malaysia and Russia among others. Those are the countries that are most important for Chinese phone developers.

    • Suresh Ramalingam
      May 11, 2015

      “Meizu and Micromax both make some very good devices on their own, imagine if they worked together?”

      Micromax make devices?!!! That’s a laugh riot!!! Micromax are nothing but ‘handset Pimps’ and that too of a particularly dubious variety. Their after sales service is non existent because they have no expertise for the same. The words Micromax and R&D are mutually exclusive. The company has made money so far by exploiting import loopholes and because of the fact that india’s population being very large they have a larger pool of numbers to fool till people get wise!! Their modus operandi is now starting to feel the heat because of entry & direct participation by chinese mobile companies in india. If alibaba is really intent on investing in micromax then all I can say is that they need to have their head examined!!!

    • balcobomber25
      May 11, 2015

      Living outside of India I have no personal experience with them but everyone I know who does live there raves about the Micromax Canvas series as well as the Yu Yureka.

  4. vijay sud
    May 10, 2015

    Micromax has come a long way from being a mere trader in mobile components to its current rank in Indian mobile space.. but in order to go uo it must overcome its reputation for porest aftersale service of its products. Manufactured to a price often the Micromax mobiles fail within 1 year and horror stories of people made to run from pillar to post are legend..no respectable mobile vendor would want..my personal story of no mobile 34 days after display failure in my Micromax A106.only firms up my resolve never to buy Micromax

  5. vijay sud
    May 10, 2015

    path of Micromax to top of Indian market is not going to be a cake walk..

    • JeffAshe
      May 11, 2015

      “Micromax has come a long way from being a mere trader in mobile components to its current rank in Indian mobile space…”

      Indeed, Micromax has gone from trading in mobile components to trading in phones that are designed and made by the Chinese. Remarkable progress indeed but still just a trading company.

  6. Wala Alan
    May 11, 2015

    I’m surprised Alibaba wasn’t turned away from investing in Micromax after their part in the OnePlus-Cyanogen wreck. Let’s just hope the same thing doesn’t happen to Alibaba

  7. JeffAshe
    May 11, 2015

    Unsubstantiated rumor at best.

    If not, Alibaba will quickly find out that Micromax is owned by Tinno Mobile, which is a Chinese electronics manufacturer.

    I’m sure Alibaba will invest in Tinno instead, if it’s still interested.

  8. JeffAshe
    May 11, 2015

    Unsubstantiated rumor at best.

    If not, Alibaba will quickly find out that Micromax is owned by Tinno Mobile, which is a Chinese electronics manufacturer.

    I’m sure Alibaba will invest in Tinno instead, if it’s still interested.