So after Alibaba , another Chinese giant invest in India . This time it is Baidu . The company is seeking to acquire a majority stake in Mydala an Indian discount marketing firm. The deal is said to be valued around $100 million or Rs663 crores .The company’s parent Kinobeo Software is looking to raise around $150 -200 million in order to survive the feirce Online ecommerce competition in India . They are also in talks with Malaysia’s Khazanah Nasional Berhad for $100 million funding . Malaysia’s Khazanah Nasional Berhad intitally invested Rs250 crore in Zivame .
A Baidu spokesperson told ET, “Of course, strategic investments or M&As that will help us round out our local user base and form a solid foundation for our products are a definite possibility in the future. We absolutely plan to be in India for the long term.”
Baidu , a mobile internet giant in China has a total market cap of 69.9 Billion with aggregated 50 million mobile users.Naukri.com’s parent , Infoedge currently holds 44% of the Mydala and plans to dilute their stake for the subsequent round of funding .
“Baidu has been looking at (the discount couponing) space in India for some time now. They are attracted to the high number of users, especially in the classifieds space that cater to the small and medium enterprises,” Kunal Walia, managing partner of boutique investment bank Khetal Advisors, told ET.
Mydala operates in 209 cities of the country with more than 30 million active users .