On July 5, the Alibaba Group affiliate business sold 3.73 Cr shares of the fintech giant through open-market transactions for INR 3,980.7 Cr, a day after rumours circulated that Antfin was seeking to sell its remaining interest in Paytm.
Societe Generale, My Asian Fund Among Key Buyers
Antfin sold the shares at an average selling price of INR 1067.6 each, according to BSE data. This was about 1% less than Paytm’s closing price of INR 1,078.3 on 4 August. Societe Generale acquired 67.5 lakh shares, while My Asian Opportunities Master Fund L snatched up 35 lakh of the shares that flooded the market.
Antfin to Sell Remaining Stake via INR 3,800 Cr Clean-Out Deal
According to a CNBC report, Antfin Holding BV, a division of Alibaba Group, intends to sell its remaining 5.84% share in One 97 Communications, the parent company of financial giant Paytm, through a clean-out block deal of INR 3,800 Cr.
The sale’s floor price is INR 1,020 per share, which is 5.4% less than the BSE’s closing price of INR 1,078.30 on 4 August. Antfin would completely leave the Indian fintech company with the deal, which is anticipated to be completed in a single tranche.
Final Exit Follows Earlier INR 2,103 Cr Stake Sale in May
This action comes after Antfin sold a 4% interest for INR 2,103 Cr in May 2025. Over 2.55 Cr shares were sold in that transaction at an average price of INR 824.67, which was 3.72% less than Paytm’s most recent closing price at the time. Goldman Sachs (Singapore) had acquired 37.25 lakh shares in that transaction at that point.
Paytm’s Performance Boosts Investor Confidence
In just three months, Antfin will have sold off almost 10% of its Paytm stock, marking a calculated withdrawal following years of investment. Antfin had roughly 23.8% of the business at its height.
The anticipated exit follows Paytm’s first-ever quarterly net profit of INR 122.5 Cr in Q1 FY26, which was achieved after the company reported a loss of INR 839 Cr the previous year. EBITDA was positive at INR 71.5 Cr with a 3.7% margin, while its revenue increased 27.7% YoY to INR 1,917.5 Cr.
Impact: China’s Stake in Paytm Nears Zero
Over the past month, the company’s stock has climbed by more than 20% as a result of rising investor confidence and a growth in mutual fund participation. The agreement would further lessen China’s involvement in Paytm, which has already come under fire for issues with foreign ownership and data localisation.
Vijay Shekhar Sharma, the creator of Paytm, and his family members own Resilient Asset Management BV, an international company that holds a 19.31% stake in One97 Communications, making them the largest stakeholder overall.
Alibaba Group Holding Ltd. is all set to launch Qwen 3, an advanced version of its leading artificial intelligence (AI) model. While the exact timing of a release remains uncertain, many in the know expect a rollout later in April. This maneuver happens to be part of an intensifying rivalry with such global AI heavyweights as OpenAI, Google, and DeepMind.
Aggressive AI Expansion Strategy
Alibaba has been on a fast-tracked AI development path and has brought new models and enhancements to market at an unprecedented speed. Just the other week, the company launched an upgraded model in its Qwen 2.5 series, which is not only capable of processing text, images, and audio but also video. This model has been set to serve as a bridge between the Qwen series and forthcoming products. Significantly, the new Qwen model is said to be efficient enough to be used on mobile devices and laptops.
This pursuit of “artificial general intelligence” is much more fundamental than what is often termed “artificial intelligence”. This involves solving of specific problems, like making personalized recommendations based on the data one has in hand. “General” means the systems can do anything a human can do and, in some cases, can do it better.
Competitive Landscape and Market Impact
The international AI arena has seen increased rivalry lately, especially since Chinese companies like Alibaba and DeepSeek have started offering not-so-pricey AI solutions.
DeepSeek, an AI upstart from Hangzhou, recently shook up the industry by coming out with an AI model that works better (and also costs way less) than anything its American analogues churned out. And so we’re seeing a wave of developing-in-China, low-cost, high-performance AI services that threaten to eat into, and maybe even ultimately challenge, the dominance of American tech titans like OpenAI, Google, and Microsoft.
In answer, OpenAI has recently revealed intentions to debut a forthcoming, more open, and human-like AI model in the immediate future. This move seems to represent a strategy shift to counter new players in the AI space like Alibaba and DeepSeek, who have been attempting to undercut OpenAI’s offerings. Meanwhile, Google and Anthropic are doing their best to hold onto the leadership charm that their AI models supposedly have. Both companies have been unveiling new updates to their models and, just like OpenAI, have been attempting to broaden the appeal of their AI models.
Alibaba’s AI Investment Commitment
AI has been chosen as the future growth driver of Alibaba, and it is going to be heavily funded. In February, the company announced that it was going to put more money into the actual research and development of AI in the next three years than it has in the previous ten. That’s a substantial bump. And when you’re talking about Alibaba, you have to remember that this is a company that spends ostentatiously.
One of the organization’s newest innovations, the Qwen2.5-Omni-7B design, demonstrates Alibaba’s resolve to lead AI innovation. Introduced on March 27, this multipronged AI system is set up to accept a range of input types, mainly text but also images, audio, and video, and to give back responses nearly as fast as you can think. Because the model is compact, it’s calibrated to run on the kinds of mobile devices and laptops that most people use every day.
According to a news agency, Chinese internet giant Alibaba on 29 January unveiled an updated version of its Qwen 2.5 artificial intelligence model, which it said outperformed the much-lauded DeepSeek-V3. The Qwen 2.5-Max’s odd release date—the first day of the Lunar New Year, when the majority of Chinese are off from work and spending time with their families—indicates how much pressure DeepSeek’s explosive growth over the last three weeks has put on both its domestic and international competitors.
Alibaba’s cloud unit released a statement on its official WeChat account stating that “Qwen 2.5-Max outperforms… almost across the board GPT-4o, DeepSeek-V3, and Llama-3.1-405B,” alluding to the most cutting-edge open-source AI models from OpenAI and Meta. Alibaba has invested heavily in its cloud services division with Tencent Holdings Ltd. and Baidu Inc., and it is in a fierce competition to hire Chinese AI developers to utilise its tools.
Locking Horns with Set Players
This week, the 20-month-old startup DeepSeek, which was established in Hangzhou, Alibaba‘s hometown, rocked US tech companies. Alibaba Cloud also disclosed results indicating that, in some benchmarks, its AI outperforms OpenAI’s and Anthropic’s models.
In an effort to attract more customers, cloud service providers like Tencent and Alibaba have recently lowered their prices. Along with six other promising AI businesses in China that have raised money at unicorn values, DeepSeek has already participated in that pricing war.
Comparing DeepSeek with Domestic Rivals
When DeepSeek‘s V3 model’s predecessor, DeepSeek-V2, came out in May of last year, it set off a pricing war for AI models in China. Alibaba’s cloud division announced price reductions of up to 97% on a variety of models due to DeepSeek-V2’s open-source nature and historically low cost of just 1 yuan ($0.14) for 1 million tokens, or units of data processed by the AI model.
Other Chinese tech giants followed suit, such as Tencent, the most valuable internet company in the nation, and Baidu (9888.HK), which launched China’s first ChatGPT-like app in March 2023. In a rare interview with Chinese media site Waves in July, Liang Wenfeng, the mysterious creator of DeepSeek, stated that the company “did not care” about price wars and that its primary objective was to achieve artificial general intelligence, or AGI.
AGI is defined by OpenAI as autonomous systems that outperform humans in the majority of economically significant tasks. Young graduates and PhD students from prestigious Chinese universities make up the majority of DeepSeek’s workforce, which functions more like a research lab than the hundreds of thousands of workers employed by major Chinese internet businesses like Alibaba.
Liang contrasted DeepSeek’s lean operations and flexible management style with the exorbitant costs and top-down structures of China’s major tech companies, saying in his July interview that he thought they might not be well suited to the future of the AI business. Liang went on to say that IT giants’ skills have their limits and that large foundational models require ongoing innovation.
Every person on this planet is fond of online marketplaces these days. There’s no one left who has never ordered something online, and there is no address that has not seen a delivery from an eCommerce shop. You might wonder how it all began and which were the initial companies of such a grand market that has conquered every city or town, of a country, and even union territory.
With Boston Computer Exchange formed in 1982, the ’90s became an era during which most of the biggest eCommerce websites came into existence. Alibaba is one of them. The Chinese multinational company Alibaba Group specializes in eCommerce, retail, internet, and technology sectors.
With being the biggest venture capital firm, Alibaba has also been recognized as the fifth largest artificial intelligence company in 2020. Speaking of its eCommerce capabilities, the second largest financial service group via its fintech arm called Ant Group hosts a plethora of marketplaces. These marketplaces include Alibaba.com which is a B2B marketplace, then Taobao a C2C platform, and Tmall which is a B2C marketplace.
You might recognize Alibaba entering the media and entertainment industry as well, through which the world’s largest retailer has earned revenues rising triple percentage year after year.
Forbes has even named the Alibaba group as the 31st largest public company in the world in its Forbes Global 2000 list of 2020.
The Chinese B2B marketplace was founded on 28 June 1999. It was founded by Jack Ma and his 17 friends and students in his apartment situated in Hangzhou. The largest B2C company in the world has its headquarters in Yuhang District, Hangzhou, China. The Chinese multinational conglomerate holding company serves its global audience with eCommerce, cloud computing, AI, and other assistance. Alibaba’s target market is the global market of international exporters and importers.
Key Products and Services of Alibaba
With specializing in the business-to-business sector, Alibaba has made its place among the leading brands and companies in cloud computing, artificial intelligence, entertainment, mobile commerce, retail, mobile media, and films as well as in the TV shows sector.
The global eCommerce market chain serves as a middleman between buyers and sellers through its platform. While playing this role, the Chinese company, Alibaba facilitates the sales of goods. The merchants of its platform are usually small merchants.
Targeting customers who want to shop from the comfort of their homes, the online supermarket sells several products such as food, groceries, tools, beverages, and more via its chain Hemma.
In its value proposition, this retail eCommerce middleman gives its merchants a platform to portray their brand on a global scale and capture a huge market. This grabs the attention of its merchant clients as they can increase the demand for their product and also their profit margin.
Whereas its shoppers can order an extensive amount of products from any part of the world. Alibaba provides a range of products from any niche, through its channels.
In the initial days, the Chinese B2B platform was working via its website but with the technological advancements Alibaba is now available on mobile phones as well.
You can enjoy the treasures of products available on Alibaba’s website through its apps for Android and iOS platforms.
The production house that has become a giant in the entertainment industry is a group with a massive holding over its subsidiaries. It has gained profits from multiple sectors and for providing services in the long run.
Its eCommerce arm alone generates 90% of its revenue, while the group has more than enough means to generate money.
When looking at its full-year earnings of 2024, Alibaba is projected to rise by 19% year over year to USD 9.09 per share. Its full-year revenue is expected to rise by 9.5% year over year with USD 133.12 billion.
The aforementioned projected full-year profit growth is the reflection of the optimism that the recovering Chinese economy is portraying.
Speaking more about its earning sources, Alibaba has a commission granted for each of its transactions. This is applied when you make a transaction on its website Alibaba.com. A similar commission transaction is applied on Taobao.com.
Although it might sound just like the commission that eBay charges on its website, Alibaba only charges the merchants for advertising.
Tmall.com on the other hand is known to generate money through the annual subscription fees. This fee is paid by the users and is subject to change which depends on several pre-agreed terms and conditions. These terms are fixed between the user and Alibaba group arm Tmall and focus on the volume of transactions made.
Alibaba Group has other means to earn money as well. Some of these include the advertising sector, membership, delivery services, sales, and more. The company’s income revolves around its marketplace offerings that connect its many users from around the world to enjoy its services and products that vary in many categories.
Revenue Distribution of Alibaba in 1st Quarter of 2024, by Segment
USP of Alibaba
There are several things that Alibaba does that are unique. It is a marketplace for the B2B segment and also the only company that covers the AI and cloud computing sector while also being a leading firm in the entertainment industry. But the Unique Selling Point of Alibaba is its image of being the world’s largest retailer.
Similarly, the firm is also the biggest venture capital firm along with an investment corporation that leads among such organizations in the world.
FAQs
What is Alibaba?
Alibaba is a leading Chinese e-commerce conglomerate connecting small merchants with global customers through platforms like Alibaba.com, Taobao, and Tmall.
When was Alibaba founded?
Alibaba was founded on 28 June 1999. It was founded by Jack Ma and his 17 friends and students in his apartment situated in Hangzhou.
What are the revenue streams through which Alibaba earns money?
Alibaba earns money through transaction fees, commissions, advertising, and subscription services.
Alibaba, founded by Jack Ma in 1999, has become a global e-commerce empire that revolutionized online commerce. Starting with Alibaba.com, the world’s largest B2B marketplace, the company expanded its services to include C2C and B2C marketplaces, logistics, payment platforms, and cloud computing. With total sales of $1 trillion in 2021 and a dominant market share in China’s e-commerce market, Alibaba is the world’s largest retailer and e-commerce company. Its marketing strategies, known for inclusivity and innovation, have played a vital role in its success. Alibaba’s campaigns, such as the 11.11 Global Shopping Festival, leverage boldness, creativity, and personalized recommendations to cater to its diverse customer base. With over 1 billion annual active consumers and 10 million active sellers, Alibaba’s global reach continues to expand. Through its commitment to innovation and customer satisfaction, Alibaba maintains its strong position in the competitive e-commerce market.
Alibaba targets a diverse global market, catering to various demographics and geographies. Its consumer and business platforms serve a broad range of age groups, genders, and income levels. With a dominant presence in China, Alibaba is expanding internationally, focusing on emerging markets. Convenience, value, and a seamless shopping experience are key for its target market. Personalized features, easy checkout, and hassle-free returns enhance the customer experience. Alibaba’s marketing campaigns are tailored to resonate with specific audiences. Its target market embraces online shopping and new technologies, with mobile optimization and investments in AI and cloud computing. Alibaba’s success lies in its ability to cater to diverse audiences while delivering value and convenience.
Alibaba – Marketing Mix
As one of the world’s largest e-commerce companies, Alibaba’s success can be attributed to its effective marketing mix. The marketing mix is a combination of various elements that a company can use to influence consumer behavior and achieve its marketing objectives. Alibaba’s marketing mix includes four key elements: product, price, promotion, and place.
Product
Alibaba offers a wide range of products and services, catering to both consumers and businesses. Its product portfolio includes consumer-to-consumer (C2C) and business-to-consumer (B2C) marketplaces, logistics and payment platforms, cloud computing, and more. Alibaba’s product offerings are designed to meet the needs of a diverse customer base, with a focus on quality, affordability, and convenience.
Price
Alibaba’s pricing strategy is based on offering value to its customers while remaining competitive in the market. Its pricing is transparent and competitive, with a focus on providing affordable options for consumers and businesses. The company’s pricing strategy also includes discounts and promotions, such as its annual 11.11 Global Shopping Festival, which offers massive discounts on a wide range of products.
Promotion
Alibaba’s promotion strategy is characterized by its bold and innovative marketing campaigns. The company’s marketing efforts are designed to be inclusive and creative, catering to the unique needs of its diverse customer base. Its iconic 11.11 Global Shopping Festival, for example, is a prime example of its promotional strategy, featuring celebrity endorsements, massive discounts, and a range of other incentives to drive consumer engagement.
Place
Alibaba’s place strategy is focused on providing convenient access to its products and services. The company’s online platforms, such as Taobao and Tmall, are accessible through desktop and mobile devices, making it easy for customers to shop anytime, anywhere. Alibaba’s logistics platform also provides a seamless shipping and delivery experience, ensuring that customers receive their orders quickly and efficiently.
Alibaba’s marketing mix is a key driver of its success in the e-commerce industry. The company’s focus on innovation and customer satisfaction has made it a force to be reckoned with in the global e-commerce market.
Alibaba, the Chinese e-commerce giant, has run many successful marketing campaigns over the years, utilizing innovative and creative tactics to engage its customers. These campaigns have helped the company become one of the largest e-commerce platforms in the world, with a reputation for being a leader in the industry. Here are some of Alibaba’s top marketing campaigns:
“Double 11” Global Shopping Festival
This annual shopping event, also known as Single’s Day, was started by Alibaba in 2009 and has since grown into the world’s largest online shopping event. The festival features massive discounts, promotions, and celebrity endorsements, and has been successful in generating huge sales for Alibaba and its merchants.
What is 11.11?
Tmall Super Brand Day
This marketing campaign features a series of promotional events for brands on Alibaba’s Tmall platform. The events are designed to showcase the brands’ products and generate buzz among consumers. Tmall Super Brand Day has been successful in driving sales and increasing brand awareness for participating companies.
Alibaba Cloud’s “Simple is Best” Campaign
This marketing campaign for Alibaba’s cloud computing division focuses on the simplicity and ease of use of its services. The campaign features a series of videos and online ads highlighting the benefits of Alibaba Cloud, such as its scalability and security features.
Alibaba’s “New Retail” Initiative
This marketing campaign is focused on Alibaba’s vision for the future of retail, which involves integrating online and offline shopping experiences. The campaign features a range of initiatives, such as the Hema supermarket chain, which uses technology to enhance the shopping experience, and the Tao Cafe, which allows customers to order food using facial recognition technology.
Alibaba’s Tao Cafe develops an unstaffed concept store
Alibaba’s marketing campaigns have been successful in promoting the company’s brand and products, and have helped establish the company as a leader in the e-commerce industry. The company’s innovative and creative marketing strategies continue to drive growth and engagement with customers around the world.
Alibaba – Marketing Strategies
Alibaba has become a household name around the world, with its innovative and creative marketing strategies playing a significant role in its success. Here are the top marketing strategies that have helped Alibaba become one of the most valuable companies in the world:
Cross-Promotions
Alibaba has partnered with other companies to offer cross-promotions, which has helped the company expand its customer base and increase sales. The company has collaborated with brands such as Starbucks and KFC to offer exclusive discounts and promotions.
Content Marketing
Alibaba uses content marketing to engage with customers and build brand awareness. The company produces high-quality content, including videos and blog posts, that showcase its products and services.
Artificial Intelligence
Alibaba uses artificial intelligence to personalize the customer experience and make recommendations based on customer behavior. The company’s algorithms analyze customer data to offer personalized recommendations and promotions.
Influencer Marketing
Alibaba has leveraged influencer marketing to promote its products and services. The company has partnered with popular influencers on social media platforms like WeChat and Weibo to promote its products and reach a wider audience.
Alipay
Alibaba’s digital wallet, Alipay, has become a popular payment option for customers in China and beyond. The platform offers convenience and security, and the company has used Alipay to offer exclusive discounts and promotions.
Augmented Reality
Alibaba has experimented with augmented reality to enhance the customer experience. The company has developed AR-based games and apps that allow customers to interact with products and make purchases in a fun and engaging way.
Social Commerce
Alibaba has integrated social commerce into its platform, allowing customers to share and promote products on social media platforms. The company has also launched its own social commerce platform, TaoBao Live, which allows influencers to promote products to their followers in real time.
Globalization
Alibaba has expanded its reach beyond China, launching international platforms like AliExpress and Tmall Global to reach customers around the world. The company has also invested in other companies to expand its global footprint.
Customer Service
Alibaba places a strong emphasis on customer service, offering a range of support options, including live chat, email, and phone support. The company’s commitment to customer service has helped build loyalty and trust with its customers.
Alibaba’s marketing strategies have helped the company become one of the most valuable companies in the world. The company’s focus on innovation and creativity has allowed it to stay ahead of the competition and build a strong brand reputation. Alibaba’s continued investment in technology, content marketing, and customer service will undoubtedly shape the future of e-commerce and set new standards for the industry.
These marketing strategies have revolutionized the world of e-commerce and have set a new standard for businesses looking to establish a strong brand identity and build a loyal customer base. Alibaba has used a variety of innovative and creative tactics to engage customers and drive sales.
The commitment to globalization and expanding its reach beyond China is also a lesson for businesses looking to enter new markets and expand their customer base. By investing in international platforms and collaborating with local partners, businesses can establish a strong presence in new markets and reach a wider audience.
Alibaba’s marketing strategies have set a new standard for businesses looking to establish a strong brand identity and engage with customers in innovative and creative ways. By incorporating these strategies into your own marketing plans, marketers and startups can establish themselves as industry leaders and drive success in the competitive world of e-commerce.
FAQs
Who is the founder of Alibaba?
Alibaba was founded by Jack Ma in the year 1999.
What are the services offered by Alibaba?
Starting with Alibaba.com, the world’s largest B2B marketplace, the company expanded its services to include C2C and B2C marketplaces, logistics, payment platforms, and cloud computing.
What is the “Double 11” Global Shopping Festival about?
Double 11 also known as Single’s Day, was started by Alibaba in 2009 and has since grown into the world’s largest online shopping event. The festival features massive discounts, promotions, and celebrity endorsements, and has been successful in generating huge sales for Alibaba and its merchants.
The content in this post has been approved by Alibaba.
Trust issues are common. People often face challenges with e-commerce companies. But the question is, are the suppliers verified? People usually worry about prices too. But with Alibaba, this is not an issue. Everything available here is at factory prices and all the sellers are verified.
Alibaba Group is a Chinese multinational conglomerate holding company specializing in e-commerce, retail, Internet, and technology. Founded in 1999 by Jack Ma, the company operates in various business segments, including wholesale and retail online marketplaces, such as Taobao and Tmall, as well as online and mobile payment systems, shopping search engines, and cloud computing services.
It is also involved in the production of electronic components, as well as in the research and development of artificial intelligence and other technology. Alibaba is considered one of the largest e-commerce companies in the world and is often compared to Amazon. It is also one of the world’s largest venture capital firms and investment corporations. Here is the Alibaba success story.
Company Highlights
Company Name
Alibaba
Headquarters
Hangzhou, China
Founders
Jack Ma, Joseph C. Tsai, Cathy Zhang, Trudy Dai, Peng Lei, Simon Xie, Jin Yuanying, Jianhang Jin, Jane Jiang, Eddie Wu, Ma Changwei, Tony Yiu, Zhou Yuehong, Shi Yufeng, James Sheng, Lou Wensheng, Han Min and Toto Sun
Jack Ma, Joseph C. Tsai, Cathy Zhang, Trudy Dai, Peng Lei, Simon Xie, Jin Yuanying, Jianhang Jin, Jane Jiang, Ma Changwei, Eddie Wu, Toto Sun, Shi Yufeng, Zhou Yuehong, Lou Wensheng, Han Min and Tony Yiu are the founders of the company Alibaba.
Jack Ma is the founder and also the former executive chairman of Alibaba group. He is a Chinese business magnate, philanthropist, and investor.
Joseph C. Tsai is also the founder of the Alibaba group. He is a Taiwanese-born Canadian billionaire businessman and philanthropist.
Cathy Zhang is the founder of the company. She is Jack Ma’s wife and is a former Chinese teacher.
Trudy Dai is a member of the founding team. She did join the company from the beginning itself. Since January 2017 she has been the president of wholesale marketplaces.
Peng Lei is one of the founders of the company. She is also known as Lucy Peng. She is a Chinese billionaire businesswoman.
Simon Xie is also a founder of Alibaba group. Before joining Alibaba group he completed his engineering degree from Shenyang University.
Jin Yuanying is another founder of Alibaba Group and Taobao. She has been responsible for both the companies mentioned above.
Jianhang Jin joined the Alibaba group in the beginning as a founding member. He has been the President of the company since August 2014.
Jane Jiang is a founding member of the company. Currently, Jane Jiang is the Deputy CPO of the company.
Eddie Wu is one of the founders of the company. Eddie Wu is the Senior Vice President. Eddie Wu handles three business units of the company.
Ma Changwei is also a founder of the company. Ma Changwei is an investor and director at Taobao Product Technology Center.
Tony Yiu is one of the founders of the company. In the International Business Unit, he was responsible for IDC operation and maintenance.
Zhou Yuehong is also a founder of the company. He studied at Hangzhou Dianzi University.
Shi Yufeng is the co-founder of Taobao. He is one of the original founders of the Alibaba group.
James Sheng is the founder of the company. James Sheng is the senior vice president of the company.
Lou Wensheng is again one of the original founders of the company. In the beginning, he was responsible for the planning of the official website.
Han Min is also a founder of the company. He is a former South Korean Minister of Defense.
Toto Sun is also an original member of the company.
Jack Ma – Founder of Alibaba
Alibaba – Startup Story
Jack Ma started the Alibaba group with other 17 original founders. Back in 1999, he started a wholesale online marketplace called Alibaba. The Chinese company blossomed into one of the most valuable corporations in the world. Now the world knows Alibaba. When Alibaba started, in India there was nothing in this sector. The dawn of the 21st century appeared to be lucky for Alibaba. It was growing as well as investing. It benefited from strict internet-controlling policies. The story seems like Alibaba grew into a global e-commerce giant from a small apartment.
The company acts as a middleman between buyers and sellers online. It facilitates the sale of goods. The majority of sellers are small merchants. Alibaba caters to almost all well-known big brands. Customer experience is a big issue for the company. Sellers cannot deliver goods that are sold. The company charges the merchant’s a fee to have their listings higher on the search rankings. The company has dominated the shopping space in China but doesn’t have a physical store anywhere.
Alibaba – Revenue Model
Alibaba’s revenue is derived from retail e-commerce and associated market services in China. The company collected a revenue of $134.567 billion in 2022, a 22.91% increase from 2021. It charges commissions as a percentage of the transaction value of goods sold. China Wholesale and Other Revenues are expected to be about 12% of the total revenues. Chinese consumption drives wholesale commerce and logistics service revenues.
Alibaba – Tagline, Slogan, and Logo
The tagline of the first Alibaba job advertisement was If not me, who? It’s not a question but a call of duty. The proverb shows a sense of ownership here.
The Alibaba logo has got two typefaces. It’s the face of a satisfied customer. The person inside is smiling.
Alibaba Logo
Alibaba – Funding and Investors
The company had raised an amount of $8.9 billion over 16 funding rounds.
Date
Transaction Name
Money Raised
Lead Investors
June 2, 2016
Post-IPO Equity
$1 Bn
–
March 10, 2016
Post-IPO Debt
$3 Bn
–
August 1, 2014
Venture Round
–
–
April 1, 2014
Secondary Market
$100 Mn
–
October 9, 2013
Secondary Market
–
–
October 1, 2013
Secondary Market
–
–
March 4, 2013
Secondary Market
–
–
September 1, 2012
Private Equity Round
$2 Bn
China Investment Corporation
September 22, 2011
Private Equity Round
$1.6 Bn
DST Global, Silver Lake
September 13, 2011
Secondary Market
–
–
Alibaba is funded by 32 investors. GIC and Temasek Holdings are the recent investors.
Alibaba – Growth
The company has positioned itself as the gateway to Chinese consumers. The company continues to grow. It had over 903 million users in Q1 2022 and the number is growing.
Alibaba’s Annual Active Consumers in China from 2017 to 2022
Alibaba – Competitors
The main competitors of the company are Amazon, Tencent, Huawei, and China Mobile.
Amazon is a technology company. It focuses on e-commerce, cloud computing, digital streaming, and artificial intelligence.
Tencent is also a Chinese multinational company. It specializes in Internet-related services and products, artificial intelligence, and technology.
Huawei is a leading platform that provides information and communications technology.
China Mobile is a company that provides mobile voice and multimedia services. Through its nationwide mobile telecommunications network across mainland China and Hong Kong.
The company is aiming towards reaching 2 billion global consumers by fiscal 2036. The company is also looking forward to creating more than 100 million jobs. And also support small and medium businesses.
FAQs
What is Alibaba?
Alibaba Group is a Chinese multinational conglomerate holding company specializing in e-commerce, retail, Internet, and technology.
Is Alibaba bigger than Amazon?
Alibaba ranks second with a market cap of over $304.1 billion, whereas Amazon ($1 trillion market cap) ranks first among the leading large-cap e-commerce companies worldwide.
When was Alibaba founded?
Alibaba was founded in 1999 by 18 people.
What is the Indian version of Alibaba?
TradeIndia is an Indian version of Alibaba.
Is Alibaba banned in India?
Yes, the Alibaba marketplace has been banned in India with the ban of Chinese apps in the country.
Masayoshi Son is a Japanese Entrepreneur, Investor, and Philanthropist. He founded the Japanese holding company, SoftBank, and serves as its Chief Executive Officer (CEO). He is the Chairman of the UK-based Arm Holdings. According to Forbes, Masayoshi is the 74th richest man in the World and the second richest man in Japan with a net worth of $44.4 billion.
Get an insight into the SoftBank and Masayoshi Son Story in the post ahead!
Masayoshi was born in Tosu, Japan. He belongs to “Zainichi Koreans”, ethnic Koreans having permanent residency in Japan. He has three brothers and is the second eldest of the siblings. Taizo Son, his younger brother is the Founder of GunHo Online Entertainment and the venture capital firm Mistletoe.
At age 16, he moved out from Japan to California for higher studies. He then lived with his friends and family in South San Francisco. He met his wife, Masami Ohno while studying at the university. The couple bears two children. He currently resides with residesmily in Tokyo.
Masayoshi Son- Education
Masayoshi went to California and finished high school in just three weeks by taking the necessitated exams at Serramonte High. After that, he pursued a Bachelor of Arts specializing in Economics and also studied Computer Science at the University of California, Berkeley.
He completed his graduation in 1980. He pursued his interest in business before Japan’s McDonald’s president, Den Fujita, and on the advice of the latter, he started studying English and Computer Science.
Masayoshi Son- Professional Life
Masayoshi Son and Softbank Story
At age 19, Masayoshi got besotted by an integrated circuit featured in a magazine and he realized that computer technology would fuel the next commercial revolution.
While pursuing his studies, he developed an electronic translator that was sold to Sharp Corporation for $ 1.7 million. He earned $ 1.5 million by importing used video games and installing them in dormitories and restaurants.
After graduating in 1980, he started Unison in Oakland, CA, which was acquired by Kyocera. He is one of the active investors and holds maximum stakes at companies like Yahoo!, and Alibaba through the means of his venture SoftBank.
Masayoshi founded SoftBank Group Corporation on 3 September 1981. The company is headquartered in Minato, Tokyo and he serves as its Founder and CEO. He also owns a professional Japanese baseball team, which he named SoftBank Hawks.
SoftBank is a multinational conglomerate holding venture which holds stakes in many technology, energy, and financial companies. It also runs Vision Fund which is the world’s largest technology-focused venture capital firm, with over $ 100 billion in the capital.
Masayoshi Son- Vision Fund Investments
Vision Fund Logo
The $ 100 billion Vision Fund is an investment vehicle that runs for SoftBank. It invests in emerging technologies like, robotics, artificial intelligence, and the internet of things. The company aims to double its portfolio of AI companies to reform real estate, transportation, and retail.
He makes personal connections with the CEOs of all companies funded by Vision Fund. He plans to raise $100 billion for a new fund. Every few years, he invests about $ 50 billion each year in startups.
The graph shows some of the investments made by the Vision Fund in its first round
In 2020, Vision Fund was recorded to have invested in 88 companies including ride-share companies Grab, Coupang, and Paytm. As of the year 2022, the vision fund has around 475 companies included in its portfolio.
Masayoshi Son- Investor
He is an active investor such that his holding company, SoftBank holds 25 % of the Alibaba company. Moreover, his stake in Yahoo! had diminished by 7%. He then established Yahoo! Japan in September 2001, where he holds a controllable interest. He stepped down from the Alibaba board in June 2020.
Post hyperinflation of SoftBank’s equity, he was strained to pivot towards Yahoo! BB and BB Phone. SoftBank has an accumulated debt of about $1.3 billion to date. Still, Yahoo! BB acquired Japan Telecom, which was then the third-largest broadband and landline provider with 600,00 residential and 170,000 commercial subscribers in the year 2020. Thereafter, Yahoo! BB is Japan’s leading broadband provider.
Masayoshi Son- Arm Holdings
Arm Holdings was successfully purchased by SoftBank in 2016 for the amount $ 31.4 billion
Masayoshi serves as the Chairman of the US-based software design company, Arm Holdings. In July 2016, there was an announcement that SoftBank is planning to acquire Arm Holdings for $31.4 billion, which would be the largest-ever purchase of a European technology company.
Arm Holdings was officially acquired by SoftBank in September 2016. The company approved the complete transaction. The total acquisition price counted to $34 billion. Moreover, SoftBank further acquired Sprint Corporation by purchasing 76% of its share.
Sprint Corporation was acquired by SoftBank by purchasing 76% of shares
Masayoshi Son- Philanthropy
Masayoshi vowed to donate $120 million and his remaining salary until retirement to support victims of the 2011 Tohoku earthquake and tsunami in the year 2011.
Post devastating effects of the Fukushima Daiichi nuclear disaster in 2011, he criticized the nuclear industry for creating a problem that worries the Japanese thoroughly. He thus invested in a nationwide solar power network for Japan. It was announced in March 2018 that Masayoshi was investing in the biggest ever solar project.
Masayoshi Son – Latest News
11 May 2022- Masayoshi recorded another point but with the loss of about $18.6 billion from Softbank’s Vision Fund Inc in the last quarter of March.
23 May 2022- Masayoshi Son was reported to meet Indian Prime minister “Narendra Singh Modi”. The meeting was mainly to discuss the role of Softbank in the technology, energy, and finance sector of India and its development.
30 May 2022- After acquiring the loss, the Softbank firm gets the paycheck compensation cut from its executive employees with no change in the paycheck of the CEO.
Conclusion
Masayoshi Son is entitled to the second richest man in Japan and 74th richest man in the world according to the Forbes Rich List. He is also the founder and CEO of Softbank. Masayoshi Son is an industrialist, investor, and philanthropist. Many other important aspects of Masayoshi Son have been shared in the above context.
FAQs
Who is the CEO of Softbank?
Masayoshi Son is the founder and CEO of Softbank.
How much of SoftBank does Masayoshi Son own?
Masayoshi Son owns about 21.25% of SoftBank.
Why is SoftBank called SoftBank?
The word “Soft” stands for the synonym of the bank. Hence the word “SoftBank” stands for the general idea of having banks of software. And the reason behind using the word bank in the title is to give the general idea of being a key source of infrastructure for the society.
Who is the richest man in Japan in 2022?
Tadashi Yanai is the richest man in Japan with a net worth of US$26.1 billion.
Does SoftBank own ARM?
ARM was acquired by SoftBank in the year 2016 for a deal of $31.4 billion.
Fintech is one of the leading industries in the world because of many emerging unicorns in the sector. The fintech industry has become a game-changer for banking services industries as it has been tremendously impacted by Technology enterprises. Most Fintech startups offer financial services such as mobile payment, digital banking, insurance, crowdfunding, wealth management, or recently even digital currencies like cryptocurrency.
Fintech companies nowadays have to rely on advanced technology like datasets, Internet of Things (IoT) artificial intelligence (AI), cloud computing, or even blockchain in order to provide their services. Fintech currently has over 79 Unicorns globally making it the largest sector with the most number of Unicorns, while there are more upcoming fintech startups that will be added to the list.
The global Fintech market was said to be valued at $111 billion, while it is now expected to grow to more than $158 billion by 2023. China is often considered one of the leading countries in the sector of financial technology. The country so far has over 2,160 Fintech startups out of which over 18 are already unicorns. According to some studies over half of the world’s digital payments were made in the country using apps like Alipay and WeChat in 2017.
In 2018, China received over $25.5 billion investments into its fintech industry making it the leader in this sector. Even to this date china continues to be the leader in the industry because it completed over 600 plus deals in 2018 alone, the country also has the highest fintech adoption rate of 69% in the world.
China went through a Fintech boom because many startups wanted to fill the gap of traditional banking which lacked in the country by introducing fintech services that fulfilled the needs of ordinary people and SMEs. Because of the growth of the fraudulent practices in the Chinese sector in China, the Government has come up with rules and regulations including 65 national financial standards and 252 financial industry standards to control them.
The fintech startups in China are targeting the middle class in the sectors of wealth management, different types of insurance and private banking as the services like mobile payment is already popular in the country.
Tencent is considered to be one of the largest gaming companies in the world, but also has a foothold in the Fintech industry. Over the years the company has come up with top-notch payment services through WeChat, which was considered to be the first online-only bank offering wealth management and other financial services in China. Through WeChat Pay the company has made many strategic investments and third-party marketplaces, increasing its valuation to $21 billion in 2018.
The company was initially founded by Ma Huateng, Tony Zhang, Xu Chenye, Chen Yidan and Zeng Liqing in 1998, with its headquarters based in Shenzhen, China. The main competitor to Tencent in the fintech sector is Alipay which is under Alibaba. By the end of 2019, WeChat had is estimated 800 million users and 50 million merchants on the platform every month. This is why Tencent is one of the most financially valuable companies in the world.
Ant Financial
Company
Ant Financial
Founded year
2014
Headquarters
Hangzhou (China)
Funding
$22 Billion
Investors
General Atlantic, Meros Equity Global Management, Warburg Pincus, The Carayle Group, Credit Suisse, Temasek Holdings, Sequoia Capital, Khazanah Nasional, Silver Lake
Ant Financial Logo
Ant Financial is one of the top fintech startups in China that was founded in 2014 with its headquarters in Hangzhou, China. Ant Financial provides various digital payment services for both customers and businesses.
Ant Financial is known for its Alipay mobile wallets which offer financial services like transferring money to bank accounts, bill payments, online or offline mobile bill payments, among others. The brands under Ant Financial are Alipay, Ant Fortune, Yu’e Bao, Zhima Credit, MYbank and Ant Financial Cloud.
Alipay also allows SMEs to accept online payments from customers through cards, corporate credit solutions and Bank transfers. Ant Financial Group is a subsidiary of the Alibaba Group which is a Chinese eCommerce giant and is also said to be the world’s most valuable Unicorn Company.
As of 2018, the company has over 87 million users across the world along with JV partners, currently, it has over 1.2 billion users worldwide. Besides its mobile wallet services, Ant Financial is also a leading fundraising company in the country.
Lufax is a popular online wealth management and P2P lending platform for personal loans. The company provides insurance services to both individuals and institutions with advanced technology like AI and Cloud. Lufax was founded by 2011 in Shanghai, China and was originally set up by Ping An as an incubation project.
It currently is the second-largest P2P lender in the country and is planning to branch out its business gradually to work with funds and insurance companies. In 2018, the company also expanded its services to Singapore, the same year it also came out with a new blockchain solution that identifies users and tracks transactions, especially between borrowers and lenders. Lufax is said to be the best Internet financing industry in China as it has accelerated the marketing process.
Bitmain
Company
Bitmain
Founded year
2013
Headquarters
Beijing (China)
Funding
$764.7 million
Investors
Temasek Holdings, Crimson Ventures, Noris Capital, Newegg, Coatue, Sequoia Capital China, CAS Investment Management, Jumbo Sheen Group, HuangPu River Capital
Bitmain Logo
Bitcoin is a well-known Edtech startup that provides hardware-based mining solutions for Cryptocurrencies. The company was started by Micree Zhan, Jihan Wu in 2013 with its headquarters based in Beijing, China. Bitmain is known for providing hardware-based mining (ASIC) solutions for bitcoin mining. By 2018, the company became the largest designer of ASIC chips for bitcoin mining.
Besides ASIC chips the company also makes servers, simple routers, AI applications, mining tools and other services & products for blockchain. Bitmain also operates BTC.com and Antpool which became the biggest pool for bitcoin. Bitcoin introduced Bitmain Technology in 2013 that successfully engaged with the field of AI and increased power consumption speed.
Simon Investment Managers, EG Capital Advisors, Affirma Capital, ORIX Asia Capital, CITIC Securities, China Minsheng Investment Group, GIC
Dianrong Logo
Dianrong is a leading peer to peer platform for personal loans. The company was founded in 2012 with its headquarters in Shanghai, China. Dianrong provides products and service offerings like credit ratings, investment products, marketplace lending solutions risk management and operation tools.
In 2018, the company created a supply chain finance solution designed especially for finance and business. The company provides a well planned and secure infrastructure for industry data and insights.
Ping An
Company
Ping An
Founded year
1988
Headquarters
Shenzhen (China)
Funding
$4.8 billion
Investors
–
Ping An Logo
Ping An Technology is the main subsidiary of Ping An Group a multinational conglomerate. The company is in charge of the financial sector that provides services like insurance, banking, investment, and numerous other internet businesses. The company went on to create Lufax and Oneconnect which are both well-known fintech companies in China.
The company was founded in 2008 and initially provided IT services to firms within the Ping An Insurance Group. Ping An also allows its customers to use its P2P lending services over AI technology. Ping An was the first insurance company to be selected on the index and is currently the World’s top global insurance brand in 2020.
CICC, COFCO, APOFCO, Sequoia Capital China, China Creation Ventures, China Taiping Insurance, Intonation Ventures, Harvest Global Investments
JD Finance is one of the leading Chinese fintech companies that was started by the JD Group in 2013. JD Group is one of the biggest B2C online retailers in China. The company has its headquarters in Beijing, China and aims to become the most trustworthy internet investment and funding platform. The company provides its customers with services for investment and financial management, which are easy, high yielding and safe.
The company uses advanced technology big data, AI, cloud computing, blockchain and IoT for providing its financial services. JD Finance is estimated to be $20 billion as it raised over $1.9 billion in 2018. The company comprises 10 business divisions that cover different types of covering corporate and consumer finance needs.
Renrenxing Technology
Company
Renrenxing Technology
Founded year
2014
Headquarters
Beijing (China)
Funding
CN¥ 4.5 billion
Renrenxing Technology is another popular Chinese Edtech startup that is known for developing applications for borrowing and lending money. The company started Jiedaibao in 2015 which has its headquarters in Beijing, China. Jiedaibao is a leader in providing peer to peer services for lending and borrowing money, besides that it also offers services like matching, registration, collection and other services for small loans for customers and SMEs.
The company is now known to be the country’s top tech unicorn company as its valuation is estimated to be over $10 billion. Through Jiedaibao, Renrenxing Technology has come up with an app that helps in deciding interest rates independently and based on that it generates an electronic contract that is legal. This enables their customers to get personal loans at a fixed price and get reminded of the repayment or expiry of the contract.
Chinese President Xi Jinping has recently come out and asked China to help him achieve the goal of Common Prosperity, a bill that can help narrow the growing wealth gap and focus on social value. Common Prosperity was first mentioned by Mao Zedong the former president of the People’s Republic of China in the 1950s but has come to existence again with the current President Xi Jinping.
Currently, people of the country are unclear on how this law may be implemented, but according to the speculations, the big tech companies of China are now under pressure from Beijing to donate towards the initiative. According to Xi Jinping, Common Prosperity is not only an Economic goal that the country has to reach, but is also the core of the Chinese Communist party’s governing foundation.
According to few studies, 20% of the China rich population earn ten times more than 20% of the poor population. This is a wider wealth gap than compared to countries like America, Germany and France.
The statistics of the country say that over 600 million people (which account for over half of the country population) live on an annual income of 12,000 yuan or $1,856 US dollars. While the rich sector of the country has only increased over the past few years, China has a total number of 1,058 billionaires as of 2021.
A Brief about the Common Prosperity Bill
As mentioned above Common Prosperity was initially coined by mentioned by Mao Zedong the former president of the People Republic of China in the 1950s. The law was also mentioned again by Deng Xiapong who was the former leader of the People Republic of China, the man who played a vital role in modernizing the Chinese economy after the Cultural Revolution.
Deng Xiapong version of Common Prosperity is different from president Xi Jinping idea because it centered on allowing certain people and regions to get rich first in order to speed up economic growth in the country.
This has long been the goal of the current President Xi Jinping, as he had mentioned the goal in his 2017 speech at the party congress to mark the start of his second term.
According to him, Common Prosperity aims in closing the wealth gap in the country and proving the legitimacy of Communist Party rule. Common Prosperity is often misunderstood as egalitarianism, but it does mean bringing down the rich in order to help the poor.
According to many Chinese analysts, the goal of common Prosperity should be about helping those who need it the most. This bill will however target the Successful MNCs of the country, Tech and Gaming companies, which has alarmed the investors.
There are possibilities the law will include policies ranging from Tax evasions and limits on how many hours tech companies employees can work among others. The taxes are said to be used to expand the proportion of the Middle class and boost the income of the poor in the country. The goal will also help adjust excessive income of the rich and possibly ban illegal ways of income.
The Chinese Government is now encouraging the country’s top MNCs and rich individuals to contribute to society through the means of charity and donations. Recently Alibaba announced that it will be investing over $15.5 billion to support the initiative of Common Prosperity. Other big tech companies like Tencent have also pledged over 100 billion Yuan or $15 billion towards numerous initiatives.
While founders of big companies like Pinduoduo, Meituan and Xiaomi have all promised billions of dollars toward social causes in order to support the goal of Common prosperity. These companies are said to invest money into the sectors of innovation of new technology, development of the country’s economy, creating high-quality jobs and supporting vulnerable groups.
Besides that, the Chinese Government has is already implementing laws for restricting gaming time for minors below the age of 18 years old to only three hours a week.
The Chinese government is also planning to ban tutoring companies from making a profit by teaching their students the syllabus on nights and even weekends. The Government also announced a reform plan to reduce healthcare costs, especially in public hospitals.
Many state agencies and tech companies have started to announce that they will invest huge amounts of money to help reach this goal, by doing this they are signaling their allegiance to this Communist Party and its upcoming schemes. If this bill is put in action it can help make housing more affordable especially in the main cities of China.
There are speculations that the bill might lead to the nationalization of private companies. The bill also will help the middle class and poorer sectors of Chinese populations in accessing education and healthcare. It also encourages the richer sector of the Chinese population to be more philanthropic and donate towards the growth of society.
The income of the rural areas can increase and they will also be able to avail public services easily. With this bill, China is aiming to increase domestic demand and self-reliance which has been propelled by the ongoing tensions between China and America.
Chinese President Xi Jinping has recently come out and asked China to help him achieve the goal of Common Prosperity, a bill that can help narrow the growing wealth gap and focus on social value.
Who first coined the term Common Prosperity?
Common Prosperity was first mentioned by Mao Zedong the former president of the People Republic of China in the 1950s.
Why is the Common Prosperity Bill being implemented?
The Common Prosperity Bill is being implemented in order to reduce the wealth gap in China’s population and help the country’s economy increase.
How many billionaires does China have?
China has a total number of 1,058 billionaires as of 2021.
Elite Business Schools have been famous for over a lot of years. Some of the major elite business schools are Harvard, Stanford, Colombia Business school, etc. Jack Ma, the founder of the popular e-commerce site Alibaba has also founded one of the elite business schools, Hupan University. Hupan University has announced that Jack Ma is stepping down as the president. Let’s look into more information about the Elite Business School founded by Jack Ma.
Jack Ma has announced that he will step down from the elite business school he had founded back in 2015. This is because of the crackdown on the influence of the billionaire in the Chinese society. The retreat from the academy is because the regulators of China have increased the pressure on Jack Ma.
Jack Ma had disappeared from public view from the day he had given a public speech against the Chinese regulators during the month of October. He had criticized the Chinese regulators and the state-owned banks.
Admission requirements for Hupan University
Hupan University which provides an executive training programme for entrepreneurs is claimed to be as hard to get into the university like Harvard or Stanford University. It was founded by Jack Ma in the year 2015 along with nine business executives.
The admission requirements of the university are very strict and accept only the candidates who have 3 years of experience in running their own business, employing at least 30 people, and have an annual revenue of around USD 4.5 million. They should also obtain 3 recommendations at least one of them which should be chosen by the university.
In the past 5 years, the university has admitted around 254 entrepreneurs and a total of 11,788 applicants have been admitted to the school. Together they employ over 1 million people and the average age of the admitted members is around 38 years and have been doing the business for the past 11 years.
So far, the school has offered 271 classes out of which most of the classes were undertaken by entrepreneurs of various traditional companies as well as internet companies. Unlike a traditional MBA school, Hupan University aims at inspiring the future entrepreneurs with a sense of social and moral responsibility.
Changes to Hupan University after Jack Ma Stepped down
As Jack Ma announced that he would step down from the Presidential position of Hupan University led to restructuring the educational programme of the university and has changed its name. Hupan had changed its name from its website and social media accounts to Hupan Innovation Center.
There were even videos released that showed workers removing the name from a large stone sign in front of the campus. The change of name was because only a licensed educational institution can mention its name as a university and Hupan is not an official university yet.
However, a person close to the business school has conveyed that Jack Ma would not hold any high profile post in the institution but several people have mentioned that he would remain connected to the school giving lectures in the future.
FAQ
Where is Hupan University located?
Hupan University is an elite business school located in Yuhu Bay, Xihu Hangzhou, Zhejiang Province, China.
When was Hupan University founded?
Hupan University was founded in 2015 by Jack Ma with nine fellow business executives.
Why did Hupan University changed its name?
Hupan University changed its name to Hupan Innovation Center because only a licensed educational institution can mention its name as a university and Hupan is not an official university yet.
