China-India Tech Week (Issue 04)
Welcome to the latest issue of China-India Tech Week. We are back from Lunar New Year’s Holiday. This issue is a bit longer than usual.
I was in Delhi last week, invited to participate a meeting with Meituan Dianping’s founder Wang Xing and his colleagues. Meituan Dianping has invested Swiggy, their first portfolio from India. Meituan Dianping, combing with Toutiao, Didi (abbreviated in TMD) is regarded as next generation of BAT (Baidu, Alibaba and Tencent). After the holiday, Wang Xing led his team to travel to Bangalore and Delhi. We exchanged thoughts over how Chinese should explore Indian market properly. Mei Tuan’s market study tour marks Wangxing’s ambition unfolded in the email to all his colleagues. He says this year is designed to be starting point of globalization for Meituan. This tour also indicates that India is at the center of his plan.
Secondly, Qihu 360 holds the same commitment. The firm kept hitting headlines during past holiday. It announced the plan to come back to list in Shanghai Stock Exchange from US. A subsidiary of Qihu 360 is going to open an office either in Mumbai or Bangalore.
Thirdly, Google China is also eyeing India market as well. Mainly, their focus is on cross-boarder e-commerce. They are about to take more than 50 Chinese e-commerce retailers to India this May.
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4 Must-Read in China Tech
Alibaba’s buyout of Ele.me leaves Baidu with clean plate to focus on artificial intelligence
The Hangzhou-based company is currently offering US$9.5 billion to acquire Ele.me, Chinese tech news earlier reported. Alibaba declined to comment on the reported acquisition. Representatives for Baidu and Ele.me did not immediately comment.
Comment: The deal is not surprising. With backing from Alibaba, Ele.me has battled hard against Meituan. The feud between Meituan and Alibaba has started since the food delivery giant chose to be funded by Tencent years ago.
Qihoo 360’s Shares Continue Plunge on Second Day After Backdoor Listing
Qihoo 360’s nature as a Chinese internet security company had been a sensitive issue in the U.S. and was a factor behind its delisting there, CEO Zhou Hongyi told Chinese media during the company’s shares debut in Shanghai on Wednesday.
Comment: Zhou Hongyi explains the return is for the sake of internet security. The untold truth is pricing. The valuation of Qihoo 360 is expected to increase 5 times in Shanghai Stock Exchange more than in NYSE.
Momo “Hooks-Up” with Tantan
The acquisition of Tantan by Momo clears its path for market domination. Is this a match made in heaven?
Comment: In the past years, there have been hundreds of online dating and hook-up Apps emerging. This acquisition marks the end of market competition.
Ride-Hailing, Food-Delivery Giants Get Into Each Other’s Business
Ride-hailing giant Didi Technology Co. Ltd. has moved into the takeout delivery business, encroaching on the turf of online services company Meituan-Dianping, which itself just got into ride-hailing.
Comment: After Uber China is acquired by Didi Chuxing, service complaint over Didi Chuxing has never stopped. Meituan has took this opportunity.
China-India Bonds in Tech
India-based music streaming service Gaana raises $115M led by Tencent
The company plans to use this new capital develop artificial intelligence to create more personalized services and features for listeners. It said also it will develop its paid-user service, too. Aside from a Spotify-like subscription offering, it also provides an ad-based service which is available for free.
Comments: As I predicted at the middle of last year, Chinese investment had began to eye India’s content industry. This deal substantiates my statement. Here is only the beginning.
Alibaba in talks to pick up stake in Dailyhunt
While Alibaba has proposed to pick up a 10-12% stake in Dailyhunt at a valuation of close to $500 million, the news app is also looking for other funding options
Comments: Dailyhunt is in hunger for new funding. But it missed a huge opportunity. At some point, its current shareholder, Bytedance, intended to continue funding them, but eventually gave up. According to my source, Bytedance was upset with Dailyhunt’s poor performance and slow movement. Is it Alibaba ready to take this hot potato?
Chehaoduo Secures Nearly $820 Million in Tencent-Led Funding
The financing round came as several well-funded platforms focused on linking car buyers, sellers, dealers and service providers online continue an expensive battle to compete for market share. Chehaoduo, started initially as used-car online trading platform Guazi, added new car online sales last year while changing its brand name to the current wording that literally translate to “so many cars.”