The Internet will change India says Alibabas Founder Jack Ma
With India on course to become the fifth-largest consumer market by 2025, Chinese e-commerce giant Alibaba’s Founder Jack Ma’s has pledged to invest more in India.
Ma has been scouting for investment opportunities to drive Alibaba’s revenues following its record $25-billion initial public offer in September, reports Hindustan Times.
Speaking at an event organised by business grouping Ficci, Ma told the Economic Times, “We will invest more in India and work with Indian entrepreneurs and technologists to improve the relationship of the two nations and to improve the lives of human beings."
Under current norms, India doesn’t allow FDI in B2C e-commerce but allows it in marketplaces where third-party sellers sell directly to shoppers through e-commerce platforms. To prevent flouting norms, most of the e-commerce players, including Amazon and Flipkart, to adopt the online marketplace model.
India’s e-commerce market, excluding travel services and tickets, is worth $3.1 billion and is estimated to grow to $22 billion in five years, according to CLSA’s November 2013 report. This is grossly undersized compared to China’s $300 billion market.
“The Internet changed me and it changed China. India is a great nation with so many young people, and the Internet will change India too," Ma said at a 'business cooperation' conference involving his home province Zhejiang in eastern China.
"They (Alibaba) will disrupt the market. Look at what Amazon did. That is exactly what Alibaba will do. Lot of noise and immensely deep pockets," Avinash Raghava, Co-Founder at technology think tank iSpirt.
In September, Alibaba had listed on the New York Stock Exchange, raising $25 billion in the largest public market debut in history.