Seemingly, the acquisition of Daraz is again in the cards as Alibaba, the Chinese e-commerce giant is in talks to acquire the Pakistani e-commerce platform to expand its operations in the country, according to Bloomberg.
The reports surrounding the interest of Alibaba in acquiring Daraz have been making rounds for quite some time but neither has yet confirmed or denied the news.
Reportedly, the companies are in the early stages of negotiating a price for Daraz and no decision has been made yet
Pakistan’s retail market has seen a tremendous growth since the advent of 3G and 4G technologies in the country and has become the world’s fastest-growing retail market. The research group Euromonitor International predicts that Pakistan’s market may expand 8.2% a year through 2016-21.
Alibaba made its entry in Pakistan last year and signed a Memorandum of Understanding (MoU) with the Trade Development Authority of Pakistan (TDAP) in June 2017 where Ant Financial and TDAP agreed to foster the growth of worldwide exports of products by small and medium-sized enterprises (SMEs) in Pakistan through e-commerce.
The Chinese e-commerce company also showed interest in establishing the e-commerce and digital payment system in Pakistan. Its subsidiary Ant Financial has decided to purchase 45% stake in Telenor Bank in the country for $184.5 million.
The e-commerce giant may also provide e-commerce platform to Benazir Income Support beneficiaries to sell their products.