China’s Alibaba Group has put on hold plans to invest in Indian companies amid souring business relations and rising political tension between the two nations, reported Reuters.
Alibaba, which has fueled the growth of several Indian start-ups, will not put in fresh funds to expand its investments in the country for at least six months, two Reuters sources said. However, there are no plans to reduce its stakes or exit investments, they added.
The Chinese conglomerate and its affiliates Alibaba Capital Partners and Ant Group have invested more than $2 billion in Indian companies since 2015 and participated in funding rounds of at least another $1.8 billion, according to data from PitchBook, which tracks private market financing.
Hitting the brakes could slow fundraising plans for some of Alibaba’s investee companies in India, which include payments platform Paytm, restaurant aggregator and food delivery service Zomato, and e-grocer BigBasket.