Alibaba Invests In AdChina And India's One97 Communications

Alibaba Group Holding Ltd (NYSE: BABA) has purchased a stake in AdChina, the online marketing company, according to a Reuters report issued Wednesday.

"Alibaba's strategic stake is expected to allow AdChina to enhance its competitive strengths in its existing businesses," said an Alibaba statement.

The terms of the deal have not yet been disclosed but the company generated $51 million in sales in 2011 and filed a $100 million IPO in February 2012, however, it pulled the listing the following year according to the report.

“The AdChina investment is geared towards improving Alibaba's online and mobile advertising efforts through Alimama, the group's advertising arm. This unit sells marketing to merchants using Alibaba's e-commerce sites like online marketplace Taobao and online retail platform Tmall.com,” Reuters noted.

The news follows Alibaba’s plans to acquire a stake in India’s One97 Communications Ltd., according to a Bloomberg report, in which Alibaba will invest up to $200 million. One97 Communications Ltd. owns the Paytm processor.

“India is a great market for Alibaba to expand into, with its huge population and still nascent e-commerce space,” said Cao Lei, director of China E-Commerce Research Center, a Hangzhou-based consulting agency. “It would help Alibaba by finding a local partner that understands the market.”

Alibaba traded at $100.00 in the premarket, down 0.76 percent.