(Image source from: Alibaba in talks to buy stakes in Micromax at USD 1.2bn?})

Alibaba Group’s arm is reportedly in talks with India’s Micromax Informatics for buying a 20 percent stake (approximately) in the second-largest smartphone brand in India by sales. The Chinese-commerce giant is expecting the huge market in India with the deal.

The deal value would be around $1.2 billion as the company is valued at $6 billion. India is presently at third spot in smartphone market, is being considered as the fastest growing one in  Asia Pacific region.

Micromax and Alibaba began talks on the stake sale after discussions with investors led by Japanese telecoms firm Softbank Corp (9984.T) stalled over differences in valuations. Micromax is famous for large screens at comfortable price range. Micromax has been enjoying good number of sales after Samsung.

However, the induction of Xiaomi, Lenovo and Huawi brands has lowered the craze in the market.

-Kannamsai