The WSJ report speculates that an investment for Foxconn in Snapdeal could see the Taiwanese firm gain a foothold in the booming Indian market. The report points out that with a stake in Snapdeal, Foxconn could give its clients a sales channel in the country. Foxconn is also said to be looking to develop a logistics operation apart from a funding platform for Indian startups in an attempt to diversify its portfolio.
Foxconn recently announced it was looking to build 10-12 plants in India by 2020, which may include an iPhone manufacturing facility as well. The company separatelyannounced with fellow Taiwanese firm Innolux it was looking at investment opportunities in the country.
Alibaba on the other hand recently made clear its intentions of investing more abroad, with globalisation a top priority for the firm. The company was recently reported to be eyeing a stake in Micromax, a leading mobile and tablet manufacturer in the country. A stake in Snapdeal could help Alibaba gain a foothold in India’s burgeoning e-commerce industry. The Chinese online giant is however yet to make a major investment in India beyond its estimated $500 million investment for a 25 percent stake in Paytm, an online payment solutions provider and marketplace.