China Dongxiang recently invested $100 million in the Yunfeng Fund LP, a private equity fund through which Alibaba Group Inc. channels investment. Giant Interactive Group, a Chinese internet company, has also invested $50 million in the fund. Alibaba Group has launched its share repurchase scheme and plans to use the investment to further restructure Taobao. The restructuring entails placing new regulations on businesses that will maintain product quality, consumer confidence and business diversity. In order to assist small and medium size businesses in adapting to the new regulations, Alibaba has invested some of this money to provide loans to members of Taobao and TMall that do not have the resources to compete with larger businesses.
The loans provided by Alibaba Group’s e-commerce financial services will be offered in a group buy deal. Five hundred Taobao merchants joined the deal in the first ten minutes, capitalizing on the 75% discount on interest.
The loans represent a gesture of good will on the behalf of Taobao and Alibaba, which aims to retain its small and medium business merchants as well as its larger players. The number of merchants taking the loans from Alibaba has reached 20,000 and continues to climb, with a total of RMB 1.4 billion being loaned out so far.
Taobao Offers Group Buy Deal on E-Commerce Loans
China Dongxiang To Invest USD100 Million In Alibaba Group