Menu
China's Alibaba to expand U.S. reach with new investment group

China's Alibaba to expand U.S. reach with new investment group

Three U.S. Internet companies have already received funding from the Chinese Internet giant

The Alibaba Group logo

The Alibaba Group logo

China's Alibaba Group is poised to invest more in U.S. tech companies with the start of a new investment group that the e-commerce giant is setting up in San Francisco .

Alibaba is looking to back "innovative platforms, products, and ideas" that focus on e-commerce and new technologies with the investment group, the company said in an email Wednesday.

The company recently invested in three U.S. tech companies, the latest being ShopRunner, an online retailer that competes against Amazon.com. Alibaba led a recent investment round for ShopRunner that raised US$200 million.

Earlier in the year, the company also funded Quixey, a search engine for mobile apps, and Fanatics, a retailer of licensed sports merchandise.

The U.S. market and Silicon Valley have talent and expertise the Chinese e-commerce company wants to tap into, said Mark Natkin, managing director for Beijing-based Marbridge Consulting. At the same time, Alibaba has ambitions to become more international. Its investments in the U.S. could lay the groundwork for an eventual expansion into the country's market, Natkin added.

"Its often more effective, more cost efficient, to acquire a company that already has demonstrated success in the area you are trying to expand in," he said.

While not as well known in the U.S., Alibaba reigns as the largest e-commerce company in its home market. The company established Tmall and Taobao, two of the country's most popular online retail sites.

In the U.S., the company has a smaller presence with its wholesale supplier sites, Alibaba.com and AliExpress, which sells products to businesses and even consumers across the world.

Alibaba could also decide to list on a U.S. stock exchange, with an initial public offering some reports have estimated could value the company at over $100 billion.

Follow Us

Join the New Zealand Reseller News newsletter!

Error: Please check your email address.

Tags business issuese-commerceAlibaba Groupinvestmentsinternet

Featured

Slideshows

Educating from the epicentre - Why distributors are the pulse checkers of the channel

Educating from the epicentre - Why distributors are the pulse checkers of the channel

​As the channel changes and industry voices deepen, the need for clarity and insight heightens. Market misconceptions talk of an “under pressure” distribution space, with competitors in that fateful “race for relevance” across New Zealand. Amidst the cliched assumptions however, distribution is once again showing its strength, as a force to be listened to, rather than questioned. Traditionally, the role was born out of a need for vendors and resellers to find one another, acting as a bridge between the testing lab and the marketplace. Yet despite new technologies and business approaches shaking the channel to its very core, distributors remain tied to the epicentre - providing the voice of reason amidst a seismic industry shift. In looking across both sides of the vendor and partner fences, the middle concept of the three-tier chain remains centrally placed to understand the metrics of two differing worlds, as the continual pulse checkers of the local channel. This exclusive Reseller News Roundtable, in association with Dicker Data and rhipe, examined the pivotal role of distribution in understanding the health of the channel, educating from the epicentre as the market transforms at a rapid rate.

Educating from the epicentre - Why distributors are the pulse checkers of the channel
Kiwi channel reunites as After Hours kicks off 2017

Kiwi channel reunites as After Hours kicks off 2017

After Hours made a welcome return to the channel social calendar last night, with a bumper crowd of distributors, vendors and resellers descending on The Jefferson in Auckland to kickstart 2017. Photos by Maria Stefina.

Kiwi channel reunites as After Hours kicks off 2017
Arrow exclusively introduces Tenable Network Security to A/NZ channel

Arrow exclusively introduces Tenable Network Security to A/NZ channel

Arrow Electronics introduced Tenable Network Security to local resellers in Sydney last week, officially launching the distributor's latest security partnership across Australia and New Zealand. Representing the first direct distribution agreement locally for Tenable specifically, the deal sees Arrow deliver security solutions directly to mid-market and enterprise channel partners on both sides of the Tasman.

Arrow exclusively introduces Tenable Network Security to A/NZ channel
Show Comments