Alibaba is considering acquiring Pakistan’s largest online shopping platform, Daraz.pk. According to a Bloomberg report citing a source close to the matter, the Chinese giant is in early price negotiations with Rocket Internet.
Daraz.pk is the subsidiary of the German-based internet company, Rocket Internet.
Daraz isn’t the only company to gather the attention of Chinese e-commerce giants. Ant Financial, the world’s most valuable fintech company, recently bought 45% stake in Telenor Microfinance Bank for $184.5 million.
The purpose of this deal was to further develop mobile payment and digital financial services of Telenor Microfinance Bank.
Pakistan’s Retail Market
Alibaba’s interest to tap into the e-commerce sector of Pakistan comes in after China’s massive investment of around $60 billion in CPEC projects. Pakistan is also ranked as the fastest growing retail market in the world.
Pakistan has nearly 50 million 3G/4G internet users and the retail market is expected to grow by 8.2% a year in the coming years. The potential has been identified by various other multi-national companies, which are planning to enter the Pakistani market.