Alibaba and affiliate Ant Small and Micro Financial Services Group Co. already owned about 43% of startup Ele.me. The deal implies an enterprise valuation of $9.5 billion for Ele.me, Alibaba said in a statement Monday, without saying how much it’s paying. Alibaba and affiliate Ant Small and Micro Financial Services Group Co. already owned about 43% of the startup. The Ele.me deal is part of a broader foray by China’s largest e-commerce company into logistics and brick-and-mortar assets. The Ele.me deal may cut into profit margins in the short term, but Alibaba has demonstrated a willingness to make such acquisitions for gains in the future.

Source: Mint April 02, 2018 06:45 UTC