Alibaba Group Holding Ltd would be buying a stake of 15 % in a chain of Chinese home improvement and furniture stores. This investment is a part of its efforts to enter into retail, the company said.
Alibaba will be investing about $865 million in Beijing Easyhome Furnishing Chain Store Group Co, and will be assisting in the digital transforming its 223 stores.
This deal would be a huge addition in Alibaba’s efforts of penetrating offline retail market. It is linking Alibaba’s online business with physical stores the premise making a new retail market itself.
Though, earlier this month, alibaba reported positive revennue earnings, beyond anticipated figures, and raised its growth forecast, its shares struggled after investments in physical retail stores.
The company is also planning to buy
33 % stakes in Chinese payment giant Ant Financial.