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Tag: alibaba

  • Jack Ma: The Success Story of China’s Richest Man and the Co-Founder of Alibaba

    Quite often you would come across motivational and awe-inspiring posts about how Jack Ma dealt with his struggles. Jack Ma Yun, the well-known Chinese business magnate, investor, and philanthropist, is popular not only with entrepreneurs, industrialists, billionaires, and business professionals but with many other individuals as well, students or otherwise.

    Jack Ma’s net worth is $26 billion. Ma was once hailed as the richest man in China and currently features in the top 10 list of China’s richest men, with the richest man currently in China being Zhong Shanshan. Besides, Jack Ma was also listed second in the “Word’s 50 Greatest Leaders” by Fortune in 2017.    

    Starting his career as an English teacher, he co-founded one of the largest e-commerce websites that are in existence today, Alibaba, and is also counted amongst entrepreneurs with mind-boggling rags-to-riches backstories.

    Did you know that Jack Ma, the owner of this multi-billion dollar online retail portal was rejected by Harvard university 10 times?

    “I applied for Harvard, for 10 times, rejected,” Jack said. Therefore, he was not unknown to rejections and disappointments that plagued his journey to stardom. Nevertheless, the man wasn’t one to cave in so easily. While Jack wasn’t a hardcore techie himself, he did an amazing job in taking Alibaba to where it stands today.

    Here’s the Jack Ma success story for you, if you are curious to learn about Jack Ma, how he founded Alibaba, and his journey!  

    Jack Ma – Early Life and Education
    Jack Ma Story
    Startup Ideation
    Jack Ma’s Alibaba Conceived
    Stepping Down
    A Lesson to Learn from Jack Ma
    Rankings In Various Lists

    Jack Ma – Early Life and Education

    Jack Ma wasn’t born into old money, he is a self-made billionaire. He had a modest childhood and grew up while communist China was transitioning into a superpower. Jack’s parents weren’t earning enough to consider themselves middle-class. It was Richard Nixon’s visit to China in 1972 that changed Jack’s childhood. President Richard Milhous Nixon’s trip to Jack’s hometown saw tremendous growth in tourism, converting Hangzhou into a tourist mecca. As a kid, Jack wanted to learn English and he used to provide tour guide services to foreigners for free. He used this as a medium to improve his English. Subsequently, Jack became an English teacher.

    After graduating with a bachelor’s degree in English, he worked as a teacher at Hangzhou Dianzi University on a salary of 12 USD per month.

    Jack Ma Story

    Rejections and Jack Ma went hand in hand. After failing in his primary school exams multiple times, and failing his middle school exams thrice, those around him labelled him a failure. He was rejected every time he applied to Harvard University. He had ten rejections by Harvard University!

    Disastrous results continued even after graduation. Multiple job rejections graced his journey; during the recruitment by KFC, he was the only one among 24 applicants not to be selected.

    His initial ventures saw similar results, they plummeted. But, the stumbling didn’t deter him; he was adman to make a mark in the e-commerce segment.

    Startup Ideation

    Jack Ma visited the United States for a project on building of highways. His stay in the United States was an exposure to the world of computers. The people in China weren’t that exposed to the technology sector and hence, the usage of computers amongst Chinese was almost negligible. Services like e-mail and the internet weren’t a common occurrence.

    When Jack used the search engine Mosaic, the first word he searched was beer. The search results quickly flashed on the screen. But when he searched for China, there were no search results. This infuriated Jack Ma, and he took the onus of bringing China on the internet radar.

    Jack Ma’s Alibaba Conceived

    Jack Ma Alibaba
    Jack Ma’s Alibaba

    After approaching his friends, seventeen agreed to join him for an e-commerce startup, and named it “Alibaba”. The company was created in his apartment. Alibaba was struggling to survive initially as it did not receive a single penny in investment. The investments of 20 Million USD form SoftBank and 5 million USD from Goldman Sachs in 1999 saved Alibaba from falling apart.

    The biggest challenge for Alibaba was to gain the trust of the Chinese which it succeeded at in the end. Jack Ma motivated his team In times of difficulty by telling them they were a young team still learning. A leader was about to change the face of e-commerce.

    Once Alibaba was in the picture, it faced stiff competition from eBay in China. To defeat eBay, Yahoo came to assistance. The company invested 1 billion USD in Alibaba. In exchange for the investment, Yahoo gained a 40% stake in the company. This was fruitful for both the companies as Alibaba became a household name in China and Yahoo gained 10 billion USD through Alibaba’s IPO.

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    Stepping Down

    Jack Ma stepped down as the CEO of Alibaba in 2013. However, he continued as the executive chairman. The company created history as its 150 billion IPO was the largest offering of a US-listed company in the New York stock exchange’s history. By virtue of this IPO, Jack became the richest man in China.

    Apart from serving people and bringing revolution through Alibaba, Jack supports environmentalism. He is a member of the global board of The Nature Conservancy. Jack has also funded a 27,000-acre nature reserve in China.

    The Alibaba group conducts various annual talent shows in order to engage with their customers. Jack is known to be a natural entertainer. During one such event, he performed wearing a punk costume in front the audience.

    A Lesson to Learn from Jack Ma

    Coming across challenges, stumbling forward and then rising up sums up Jack Ma’s journey. To many, he is the ideal entrepreneur. Alibaba has given a face to many small and medium sized businesses across the globe. The world shall remember Jack Ma as a visionary who gave it the behemoth, Alibaba.

    Rankings In Various Lists

    • Jack Ma is ranked 1 in the China Rich List, 2019.
    • He is ranked 21 in the Billionaires List, 2019.
    • He is ranked 7 in the Richest In Tech, 2017.
    • He stands in the 21st position in the Most Powerful People List, 2018.

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    Jeff Bezos is currently the World’s Richest Man with a Net-worth of $193.2billion as of April 2021. He is the founder & CEO of Amazon and the owner of‘The Washington Post’. The e-commerce industry has been at the center of mostentrepreneurial attempts and ventures. Significant developments have h…
    StartupTalkyPiyush Mishra

    FAQs

    Who is Jack Ma?

    Jack Ma Yun is a Chinese business magnate, investor and philanthropist. He is the founder of the E-commerce giant Alibaba and is a stakeholder at Alipay, its sister company, which is an e-payment portal.

    What companies does Jack Ma own?

    Jack Ma is the founder of Alibaba.

    Where is from Jack Ma?

    Jack Ma is from Hangzhou, China.

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    A successful entrepreneur strives to change society for good. Making money is anequally important dimension for them. Moreover, entrepreneurship, if done right,leaves an everlasting legacy. One of a founder of Microsoft, “Bill Gates” is anindividual who is deified as one of the most successful en…
    StartupTalkyRishabh Rathi

  • Why did Alibaba saw a loss for the first time in years?

    Alibaba Group Holding Limited which is also known as Alibaba group is a Chinese based technology company. The company was founded in the year 1999 and has its headquarters located in Zhejiang. Alibaba group specializes in e-commerce, internet, technology and retail sectors. The company has recorded a loss for the first time ever, so let’s look at the reason behind it.

    Results of Alibaba
    Reason for the Loss
    The shares of Alibaba
    FAQ

    Results of Alibaba

    The top e-commerce platform of China Alibaba had recorded a loss of 7.66 billion yuan on 13 May 2021 for its first quarterly results. This is the first time the company has recorded a loss in its history after going public in the year 2014.

    The company has recorded an annual revenue of 930 billion yuan for the year ending March 2022 which is more than what they had estimated that is 982.25 billion yuan.

    There was an increase in the core commerce revenue of the company of around 72% which was amounted to 161.37 billion yuan in the fourth quarter. But the company’s cloud computing has seen a slow in its growth which had reduced by 58% to 37 % compared to the previous year to 16.8 billion yuan. This is considered to be the most weakest growth since the year 2016.

    The overall revenue of the company has seen an increase with 187.4 billion yuan for the fourth quarter when compared to the Refinitiv forecast of 180.41 billion.

    JackMa Pens down Letter Ahead of Stepping Down
    Jack Ma, the executive chairman of Chinese e-commerce giant, Alibaba is to stepdown in September 2019. With just a year left, JackMa has penned down a letterto his employees, shareholders and customers. He pointed out that a companycannot be forever cradled by its founders and there’s a need to b…
    StartupTalkyShubham Kumar

    Reason for the Loss

    The main reason for the recorded loss by the company is considered to be the regulations bought in by the Chinese regulators. The regulatory crackdown in China had led to the suspension of one of the biggest IPO of the affiliate company of Alibaba Group, Ant group where the IPO was estimated to be USD 37 billion.

    Other than that, the company was fined by the Chinese regulators on the basis of anti-competitive business practices with a fine of USD 2.8 billion. The fine had led to an operating loss in the fourth quarter of around 7.66 billion yuan.

    The slow growth in the cloud computing sector is due to a top customer which had a huge presence outside of China in the cloud computing business of Alibaba. The company had conveyed that the customer had ended its business for non-product related reasons which led to the slower growth.

    The reasons why Alibaba might be fined $1 billion by China
    Alibaba Group was founded on 28 June 1999. It is known as Alibaba Group HoldingLimited and also as Alibaba.com. It is a multi-national company which is basedin Zhejiang, China. Alibaba group specializes in e-commerce, technology, retail,and the internet. Alibaba is one of the world’s largest e-c…
    StartupTalkyAlan Joseph

    The shares of Alibaba

    The US listed shares of Alibaba group had seen a fall of around 3% in the choppy market even though there was an increase in the revenue of the company as the pandemic had forced people to depend more on the e-commerce solutions and would help the company recover easily from its losses.

    It is seen that since the shares of Alibaba group had hit a record high in October, the US listed shares have fallen more than 30% as the founder Jack Ma had delivered a speech in Shanghai where he criticized the financial regulators of China.

    Brock Silvers who is the Chief Investment Officer at the Hong-Kong based Adamas Asset Management has said that the fall in the share price of Alibaba reflects that there is anxiety amongst the investor community in regards to the regulation.

    He added that the company has currently faced a huge regulatory risk, which has now become a threat to the entire technology sector.

    Daniel Zhang who is the Chief Executive officer had conveyed in an earnings call that the penalty decision had motivated them to reflect on the relationship between the economy of the platform and society, as well as their commitments and their social responsibilities.

    FAQ

    Who owns Alibaba now?

    SoftBank Group is the major shareholder of Alibaba.

    Who is the current CEO of Alibaba?

    Daniel Zhang is the current CEO of Alibaba.

    Is Alibaba bigger than Amazon?

    Amazon is vastly larger than Alibaba.

    Conclusion

    Alibaba group is one of the largest and successful e-commerce groups in China. As of 2020, the company has around 779 million active subscribers.

  • Why Alibaba might be Fined $1 Billion by China

    Alibaba Group was founded on 28 June 1999. It is known as Alibaba Group Holding Limited and also as Alibaba.com. It is a multi-national company which is based in Zhejiang, China. Alibaba group specializes in e-commerce, technology, retail, and the internet.

    Alibaba is one of the world’s largest e-commerce and retail companies. It was also rated as the fifth largest Artificial Intelligence company in the world in 2020. Jack Ma is the founder of the company. The company has around 117,000 employees as of 31 March 2020.

    The company’s name was derived from the character Alibaba from the middle-eastern story, One thousand and one nights. The name signifies that the company is Universal.

    The company is considered one of the 10 most valuable corporations. Alibaba group is named as the world’s 31st largest public limited company according to the Forbes 2000 2020 list.  As of 2020, the company has the sixth-highest global brand valuation. The company owns and operates different organizations in different business sectors across the globe.

    Alibaba group has been facing certain legal actions from the Chinese government. The company is being criticized and the company is asked to pay around $1 billion as a fine to the regulators. Let’s look at the reason behind it.

    Reasons Why Alibaba might be Fined?
    What Jack Ma said about Alibaba being fined?
    Consequences of the Fine
    FAQ

    Reasons Why Alibaba might be Fined?

    Alibaba Group has already faced legal actions in the past. Alibaba Group had forced their e-commerce sellers to pick any one platform. They have stopped their merchants to list themselves on other platforms which are against the rule of the Chinese Government.

    Alibaba is said to have alleged the anti-competitive practices by the 2008 antimonopoly law. It is said that the company had acquired its competitors without getting approvals from the government. The company had declared themselves that the acquired companies were not their competitors.

    In addition to this Alibaba group’s founder, Jack Ma’s business empire is being investigated by the Chinese Government as he had spoken against the Chinese regulatory system in October 2020.

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    StartupTalkyAbhishek Gupta

    What Jack Ma said about Alibaba being fined?

    Jack Ma said that good inventions will be able to exist with regulations but they wouldn’t exist with old-fashioned regulations. He gave an example saying that one cannot manage an airport the same way they manage a train station. He told that in the same way, we won’t be able to manage our future the way we manage the past. This was a statement made for the regulations laid down by the Chinese Government.

    He also spoke about the financial system of China saying that they should develop and depend more on credit system development. He said that they should move away from the pawnshop mentality within the financial industry.

    Annual revenue of Alibaba Group
    Annual revenue of Alibaba Group

    Changes in FDI Norms: Harm to investors from China or to Unicorn Startups Of India?
    The government of India brought in a lot of changes in the FDI norms. This wasdone keeping in mind the nation’s condition amidst the global pandemic. The mainaim was to prevent foreign companies from opportunistic take overs of Indianfirms. The recent investments made their point on curbing Chi…
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    Consequences of the Fine

    China’s state administration has asked Alibaba group to pay an amount of $1.3 billion. The fine was implied for breaking the 2008 anti-monopoly law. This is the maximum fine collected under the law.

    The Alibaba Group was fined for investing an amount of $692 million in Intime during the year 2014 and for bidding an amount of $2.6 billion in 2017 for privatizing Intime.

    This will be the highest fine ever paid by a corporate in the history of China. Alibaba group has also been asked to cancel its association with the company’s founder Jack Ma. The regulators have told that if they fail to disassociate with their founder the company will have to face actions.

    They will have to pay the fine only if they don’t follow the rules of the Chinese government. Also do not end the policy where they force the merchants to sell only on their platform. The company is also been asked to withdraw its investments from some businesses. The regulators want the company to remove non-core businesses from its core retail operations.

    Ant Financials which is a subsidiary of Alibaba group has been claimed as a risk for the Chinese Financial system. The company was asked to undergo certain changes which are said to affect their business model.

    Alibaba Group had to temporarily stop the IPO plans of Ant financials due to the allegations. The authorities of Beijing stopped the IPO issue of Ant financials which was supposed to be for $37 billion.

    FAQ

    How much does Jack Ma earn per second?

    Jack Ma earns $0.32 per second and $1,141.55 per hour.

    What percent of Alibaba does Jack Ma own?

    Jack Ma owns 8% of Alibaba group.

    Who is the richest person in China?

    Jack Ma is the richest person in China with a net worth of 48.2 billion as of July, 2020.

    Conclusion

    Mr. Ye Han, a partner at Beijing-based law firm Merits & Tree told that the message was clear. The companies are supposed to seek approvals from the government for such deals in the country. He is a person who has a specialization in anti-trust, mergers, and acquisitions.

    Alibaba Group has said that they would actively corporate with the regulators regarding the case and their business operations would remain normal during that time.

    The regulators took strict actions against the company after the founder Jack Ma’s speech during the Bund Summit in October. He spoke about the countries strict regulations and the over dominance over the banking industry. This has led the Chinese regulators to take strict actions against the company.

  • Startups funded by the Alibaba Entrepreneurs Fund

    Entrepreneurship and Business are some of the growing professions in the recent times, and cohorts of entrepreneurs are working on their own startups with unique and actionable ideas. Startups with innovative ideas, applicable solutions, and a roadmap to build a fortune out of them are often funded by venture capital and investment firms. Such firms offer private equity finances to startups in need of funds in return for a fraction of the company itself. While there are discrete firms for such investment, larger corporations including Google and Microsoft haven’t held back from this either.

    Alibaba Group is another such corporation that has taken to venture investment in startups, and has since invested in over 200 different funding rounds in smaller companies and startups. With the latest investment made in December of 2020, Alibaba Group has also made 4 diversity investments while also having acquired 32 organizations. So here we discuss 10 innovative and promising startups that the Alibaba Group has invested in, and the services they have to offer.

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    Jack Ma: Co-founder of Alibaba

    Lynk
    Kloudless
    KKday
    Pickupp
    ZStack
    Qupital
    Aqumon
    Kneron
    Airwallex
    Prenetics

    Lynk

    Lynk, a knowledge network to seek and share information, has raised a mammoth $24 million in Series B funding by Alibaba Entrepreneurs Fund and 2 other investors. Lynk offers a global network of over 840K knowledge partners from every major sector, enables users to build a knowledge platform, as well as create their own profile to get discovered and consequentially rewarded. Be it the investment sector, the corporate world, or even professional services, Lynk Answers has insights on most of the topics you can ask for, and while it is quite comprehensive in itself, Lynk is coming up with a couple of more platforms including the Lynk Circle and the Lynk Infinity.

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    Chinese Investors in Indian Startup Ecosystem

    Kloudless

    Kloudless, an API integration platform for software developers, has raised about $7.3 million in Series and Seed funding from 17 investors, including the likes of Alibaba Entrepreneurs Fund and Bow Capital. Kloudless strives to unify endpoints and data models across SaaS API to evade all the redundant hard work that goes into recurrent coding. Along with the unification, Kloudless also offers other functionalities including cloud storage, event scheduling, customer relationship management (CRM), email and chat, as well as incident management. Users can also avail real-time activity monitoring without any API maintenance.

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    KKday

    KKday is a travel experience platform that seeks to help others find and live their most ecstatic travel experience, and has raised about $107 million in different funding rounds from investors including the Alibaba Fund. When it comes to travel promotions, destinations, and trending products, KKday is one of the best platforms encompassing a variety of options, ranging from the adventure of deep sea to mesmerizing views from great heights. KKday also offers transportation including car rentals for local commute, as well as merchandise and commodities along with activities and also arranges for communication including sim cards and an internet connection.

    Pickupp

    Pickupp, an on-demand courier delivery service, has raised an undisclosed amount in 4 funding rounds and is backed by 10 investors including Cyberport Macro Fund and Alibaba. With its efficient door-to-door delivery service and delivery optimization, Pickupp helps online stores save up to 33% in the delivery costs. It offers on-demand service all seven days with real-time GPS tracking, drop off picture and e-signature, along with cash on delivery as well as API integrations. Moreover it also offers various plans including the Express Delivery service and the Same Day Delivery service, priced at different subscriptions so users can choose the better suited option.

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    Startups funded by Fireside Ventures

    ZStack

    ZStack, an open source Infrastructure as a Service (IaaS) software, and has been funded by 13 investors and 3 lead investors, and has raised an enormous $49 million over 3 funding rounds. Its productionized IaaS software offers users a unified cloud to manage data center resources for computation and storage along with an intuitive UI and quick installation of cloud on physical servers. It is also supported by a one-click cross version update for business continuity and resource reusability. Moreover, any devices employing the x86 architecture with a CPU can deploy the ZStack software enterprise seamlessly.

    Qupital

    Qupital is a fintech platform based in Hong Kong, and has raised about $8 million in funding from various investors including the Alibaba Entrepreneurs Fund. Qupital allows you to invest in some of the most promising E-commerce market with top notch digitized financing services by employing machine learning and data analysis. Qupital is known for the easy and straightforward application process with a data driven credit model without any mortgage. Moreover, with the quick loan and low cost financing, the complete process is streamlined and seamless.

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    Aqumon

    Aqumon, a Hong Kong based fintech company and digital wealth management platform, thus far has raised about $30 million from 6 investors including the likes of Alibaba and Cyberport. Aqumon is one of Hong Kong’s leading investment platforms and allows you the access of smart portfolios in a matter of minutes. Aqumon has a seamless investment procedure where all yo need to do is offer some insights about yourself in a short test, and Aqumon finds the perfect portfolio for you, so you can watch as your money grows. Also, even if you can’t monitor the markets on a daily basis, or can’t find the best investments, Aqumon does it for you, while you can sit back and relax.

    Kneron

    Kneron is an AI based solutions provider, and has raised over $73 million in funding in 4 funding rounds from 9 investors including Qualcomm and Alibaba. Kneron’s innovative and robust on-device Edge AI offers solutions to work seamlessly with cloud based AI systems, to simultaneously generate and infer data and results. Kneron offers Reconfigurable Artificial Neural Network (RANN), that adapts to recognize audio, 2D, and 3D inputs while also being compatible with AI frameworks and neural networks. Moreover,  it also enables users to customize and integrate total system hardware and software solutions to make it ideal for AI computing.

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    Airwallex

    Airwallex is a global payments fintech platform that empowers businesses to operate seamlessly, and has raised $402 million in 11 funding rounds backed by 8 lead investors and a total of 17 investors. Airwallex enables business across the globe efficient and seamless trading and reduces currency exchange friction while also introducing you to revenue streams in newer markets. You can also hold your funds in a foreign currency, and reduce fee when converting and withdrawing funds in your preferred currency. Moreover, Airwallex also allows for low fee international payments with faster methods along with batch payments.

    Prenetics

    Prenetics, a genetic and diagnostic health testing platform has raised $67 million in funding from 10 investors including Alibaba Entrepreneurs Fund and Venture Capital. In the wake of the pandemic, Prenetics was appointed and sponsored by Hong Kong’s government for COVID-19 testing, and with the help of Oxsed, Prenetics has helped over 200K staff of restaurants, supermarkets, and other services by identifying and isolating infected individuals. Prenetics has always strived to provide valuable and actionable health related information and has till date conducted 400K DNA tests worldwide and counting.

    Conclusion

    Alibaba Entrepreneurs Fund is a non-profit subdivision of the Alibaba Group, and is aimed at helping the Startup Ecosystem grow. While Alibaba offers a Youth and an Investment program that is more focused Hong Kong and Taiwan based entrepreneurs, it has also invested in Startups from India and other foreign countries with great upside potential. All in all, lately many industrial giants including Google and Microsoft have demonstrated interest in funding startups, and in the near future, revolutionary startup ideas will be more than welcome for investment capital and mentorship.

  • Changes in FDI Norms: Harm to investors from China or to Unicorn Startups Of India?

    The government of India brought in a lot of changes in the FDI norms. This was done keeping in mind the nation’s condition amidst the global pandemic. The main aim was to prevent foreign companies from opportunistic take overs of Indian firms.

    The recent investments made their point on curbing Chinese investments in Indian Firms. As per the new FDI norm any country that shares a land border with India will no longer be able to use the automatic route in the FDI. The companies who would like to invest must seek government’s clearance over any investment proposal.

    The changes were brought in late April earlier this year. The main aim was to stop Chinese Investors from   their predatory behavior. These rules would be applied on countries such as Bhutan, Pakistan, Nepal, Myanmar, Afghanistan. But there is a very small flow of investments from these countries. So, this is evident that the norms are to keep an eye on China for any signs of exploitative behavior.

    All this was not done on any sudden decision. The reason behind all this is form the year 2015. Since 2015 China has increased its investment in India. This looks like a very strategic move. According to a report by the DPIIT, Department for Promotion of Industry and Internal Trade. The total amount of FDI that has flown from China to India is around $1.8 Billion. All this within a 2015-2019. In the year  2015 itself there was an investment of total $494.75 million.

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    The industry that has particularly caught the eye of the Chinese investor is the Indian Automobile Industry. Between the same period that is from 2015-2019. The automobile Industry has seen a total investment of $876.30 million. The electrical equipment manufacturing along with the book printing sectors have also seen a hug inflow. All this FDI flow confirms the foothold of Chinese investors in the nation.

    Yearly FDI Inflows (in USD Million)
    Yearly FDI Inflows (in USD Million)

    The companies that would be affected the most would be the companies like BigBasket, Paytm and Ola. These companies are just collateral damages of the governments new rules to protect minor companies. The online Grocery vendor Gofers along with the digital payment app and OLA have  received millions of dollars as investment from Chinese Investors.

    The new norms would effect the fresh funds that were supposed to role in.

    “The new FDI guidelines essentially imply Chinese capital would require prior government approval. In effect, given the uncertainty around approval, startups will shy away from Chinese capital. In the immediate future, this could impact PhonePe and potentially Paytm at a later date,” said Ashneer Grover, CEO and co-founder, BharatPe

    According to a report by the Think Tank Gateway House a total of $4 Billion has been invested in Indian startups by the Chinese tech investors. Another report said that 18 of India’s 30 Unicorn Startups are funded by Chinese Investors.

    Companies having Chinese Investments are:

    | Chinese Investors | Indian Startups|
    |— |— |—|
    | Tencent | Byju’s,Ola,Dream11,Flipkart,Hike |
    | Alibaba | Paytm,BigBasket,Snapdeal,Zomato |
    | Xiaomi | Hungama, Sharechat, Rapido |

    BigBasket the online grocery store got a $50 million funding from Alibaba. This investment rolled in when the company was facing its own share of problems in the lockdown. But these new FDI norms would hit the company. BigBasket would face troubles for its capital infusions with Alibaba. BigBasket would now have to search other places to reach its requirements on the basis of investments.

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    Paytm raised a huge sum of $1 Billion from the Soft Bank in Japan and from Ant Financial from Alibaba. Paytm faces tough competition from Google and PhonePe(owned by Walmart). To fight these competitors Paytm has to be always on the edge of innovation . But the company would face a major fallback after the new norms. Alibaba is the largest share holder in the company. This would indeed affect the digital payments platform.

    Alibaba’s Ant Financial has been an investor in Zomato since the year 2018. Ant Financial invested $210 million in the food delivery app. It go a stake of 14.7%. By this Ant Financial became the company’s Largest investor. This stake was raised to 23%. According to news reports this was going to be increased earlier this year. But between that the Indian government revised its FDI norms.  

    18 of the 30 Unicorn Startups who are funded by Chinese Investors would face a lot of troubles. The move of making changes in the FDI norms is to hurt the Chinese Investors. But this would hurt the unicorn startups. This move has put many jobs on risk.

  • Growth of the Gaming Industry, a Multi-Billion market

    The global gaming market was valued at $ 151.55 billion in 2019 . This industry is expected to reach a value of $ 256.97 billion by 2025. It is expected to register a CAGR of 9.17% over the  period (2020 – 2025).  Gamer’s experience is what all the emerging comapnies are focusing at. Every company is eager to write codes for mobile phones, play station, xbox. All this will be provided to the users incorporated in a single cloud storage.

    Role of Cloud Storage and Gaming

    The market is driven by the emergence of cloud gaming. The idea of cloud gaming has been formed a reality with the advances in technology. The server is the place where all the games are stored , in cloud gaming. All the computation work is done here. The work includes game scene rendering, game logic processing video encoding, and video streaming. Companies like Onlive, G-Cluster, StreamMyGame, Gaikai, and T5-Labs are offering cloud gaming services that are commercial. This new sector seems to be a threat to the idea of traditional

    This idea of cloud computing has prompted video game majors. Companies such as Sega, Ubisoft, Epic Games, Atari, Warner Bros, Disney Interactive studio to partnerships with Onlive. This will be done to distribute their games.

    Startups in Gaming and Industry boost

    The market growth is being propelled by new startups.This sector is seeing considerable activity from new comers.

    Share of Hardware devices used for playing games
    Share of Hardware devices used for playing games

    The outbreak of COVID-19 has given the gaming industry a boost.A survey in March 2020 shows that the  video gamers in the United States  have reported playing 45% more time than usual playing games.The gamers have reported playing more than usual every week amidst the lockdown. Esports is a gaming company that manages to make more than a billion dollars a year.  Twitch’s first time download has seen a rise to  the epidemic in March has risen to 14% in  the U.S.A and a staggering 41% in Italy.

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    Mobile gaming has seen the biggest increase due to the Covid-19 measures all around the globe. Mobile games  are expected to generate revenues of $77.2 billion in 2020.The industry will grow +13.3% this year.
    Reasons for choosing phone over PC:

    • Mobile gaming has the lowest need to entry: A smartphone is owned by more than two – fifths of the global population. Playing on mobile phone gives the added benefit of having free games.
    • Mobile gaming provide an option to PC cafes: The covid-19 situation has seen the closure of many gaming cafes. This forced gamers to move  to phones on a temporary basis.
    • The mobile game developement is a lot easier than PC one : The mobile gaming had no major effects due to this .

    The number of players on mobile phone will rise to 2.6 Billion in 2020. This would  contain 38% who would pay .
    The growth in console marketing has slowed down. It has gone down from what it was in 2018. The expectations for next – gen consoles had its effect on sales of consoles in 2019. Due to this a lot of companies had to adjust their annual sales and savings.

    Gaming scene in India

    Indian mobile marketing has grown over the past few months. Growth of gaming has forced the manufacturers to make a  lot of changes in the normal smartphones. A whole new type of Revolution. Not only the mobile industry but also the gaming industry is going through a revolution. The industry is growing from investments from  players like  Tencent , Nazara and Alibaba.
    The market value of Indian Gaming industry was around 62 Billion INR in 2019. This is expected to rise to 250 Billion INR till 2024. This growth indicates a growth in the number of jobs in  this sector.  By 2022 the strength of employees is expected to become 40 thousand.

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    Value of Gaming Industry in India

    The value of the gaming market in India was around 62 billion Indian rupees in 2019. This is estimated to go up to over 250 billion rupees by 2024. The industry is expected to generate 40 thousand new job opportunities by 2022.
    According to a survey a majority of Indians play a type of game daily. It showed that shooter and sports games were popular among men. The women preferred adventure and strategy games.
    Gaming in India has seen its peaks more in Mobile Gaming. With the availability of cheap and almost free internet mobile has become he best option. The industry is expected to grow a lot in the upcoming years.

    Console Gaming In India

    The market value of console Gaming in India is expected to reach about 291 million USD by 2022. The console gaming market is expected to be about 36.3 percent by 2022. The industry has seen a growth of 35.5 percent since 2016.

    “PS4 sales have doubled in Q1 FY20 (April-June) as compared to Q4 FY19 (January-March). There has been an outstanding 200%+ growth in peripheral sales as well, which indicates an attitudinal shift, making gaming a more inclusive family entertainment option in India. May and June 2020 have witnessed the highest ever sales,” said Prosenjit Ghosh, Head of PlayStation Business, Sony India.