The Chinese giant Alibaba recently said that it is putting the plans of investment in Indian companies on hold due to the rising and heated debates between the two nations.
Sources say that this decision will add fuel to the already tense relationships between the two nations.
Further, the source added that Alibaba had been a major investment source for numerous Indian start-up companies, and as of now, they do not want to continue the same plans. With this, the source denied being identified as the shared information is confidential.
Alibaba refused to make any comment on the matter.
The source said- “Alibaba and a few others have put on hold their India investment plans for six months, and they are hoping that things would cool off a bit after that,” Source: NDTV.
Source added- “No one is planning to put their stakes in Indian ventures on the block given the market condition and the fact that there aren’t many buyers.” Source: NDTV.
The Chinese conglomerate and its affiliates Ant Group and Alibaba Capital Partners have been investing in the Indian companies since 2015. And as per the reports, these Chinese giants have invested more than $2 billion so far. This data has been researched and released by PitchBook, which keeps track of private market financing agencies throughout the world.
After the tense circumstances on the Indo-China border at Ladakh, India decided to pull its investment and other government-affiliated projects from Chinese companies and banned around 59 Chinese apps with a message of boycotting China.
The clashes started in June when the Chinese Army killed 20 soldiers of the Indian Army.
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