Alibaba Wants To Buy India Jabong

In mid April, it announced the holding of 1 billion dollars for Southeast Asia.

After platform Lazada GroupSpA, it is reported that Alibaba Group Holding Ltd. (NYSE:BABA)

I also saw India, also founded by RocketInternetSE (RKET.DE).

Electricity supplier Jabong (XerionRetailPrivateLtd.).

India media quoted news that Abof, one of India's comprehensive group Aditya Birla Group's electricity supplier companies, and one of India's largest business group Snapdeal (JasperInfotech PrivateLtd.) were leading in the competition for Jabong.

Alibaba, India's other e-commerce giant Flipkart Online Services PvtLtd.'s fashion business Myntra Designs PrivateLtd. and India's large retailer FutureGroup have contacted the 168-201 Services India rupee ($2.49-2.98 billion) Jabong.

Two years ago, the electricity supplier and Amazon.comInc. (NASDAQ:AMZN) Amazon group negotiated a valuation of up to $1 billion.

Jabong owners Rocket InternetSE and Swedish investment company Investment ABKinnevik (KINVB.ST) are reluctant to inject more capital into emerging market businesses such as Jabong, which are struggling to make money.

The two companies in April this year have sold LazadaGroupSpA's controlling stake and Vietnam and Thailand's largest fashion business Zalora's Vietnam and Thailand businesses.

In September 2014, Rocket InternetSE and its major shareholder Investment ABKinnevik merged Zalora, Jabong and other fashion business Lamoda (Russia), Dafiti (South America) and Namshi (Middle East) to the newly formed GlobalFashionGroupSpA, forming a fashion business group covering 27 countries in the world's 5 main new markets.

Since its establishment, GlobalFashionGroupSpA has raised more than $200 million and its valuation has reached 3 billion 50 million euros.

But also in April of this year, Rocket InternetSE sharply reduced the valuation of Global Fashion GroupSpA to 1 billion euros.

The latter chief executive, Romain Voog, pointed out that it reflected the stock price trend of the fashionable e-commerce peers and the weakness of the company's own profitability.

Jabong2015, which was established in 2012, increased by 14% from GMV to 15 billion 30 million rupee ($223 million) in 2012, but revenue increased by only 7.1% to 8 billion 691 million India rupees ($129 million), an increase of considerably slower than 135.7% in the 2014 fiscal year.

The annual loss was 467 million India rupee ($6 million 930 thousand), narrowing significantly compared to the 1 billion 595 million India rupee ($23 million 700 thousand) in 2014.

At present, Amazon.comInc. Amazon group, Flipkart Online Services PvtLtd. and Snapdeal are the three largest electricity supplier groups in India. In the 2015 fiscal year three, the local losses are as high as 50 billion 520 million India rupees (749 million US dollars).

Executives of Rocket InternetSE and Investment ABKinnevik are currently stationed in India to supervise the sale process of Jabong.

A senior executive of the electricity supplier revealed that negotiations between Jabong and the potential investors have not entered the advanced stage in the past few weeks, but the paction is expected to be completed within half a year.

The India authorities have relaxed foreign investment in the field of electricity supplier, so Alibaba can enter the India market regarded as "future" through holding or wholly-owned acquisition of Jabong, increasing the proportion of overseas business through international expansion to offset the possible crisis caused by the slowdown in China's domestic growth.