Chinese ecommerce player Alibaba has tied-up with Mumbai-based logistics provider MYPACCO as part of its trade facilitation centre (TFC) to boost Alibaba’s supply chains in the country. The trade-facilitation centre is a business-to-business platform for global wholesale trade and will offer SMEs options for finance, logistics and credit checks. As part of the deal, MYPACCO will offer freight forwarding, customs clearance, documentation, warehousing, transportation and 3PL services to Indian SMEs through the TFC.
Alibaba has also partnered with India’s largest private sector lender, ICICI Bank, to provide trade finance and with certification company SGS to provide credit checks and inspections for the TFC.
Founded by Vinay Bhartia and Mukesh Agarwal, MYPACCO also works as as an online aggregator and price comparison platform for courier services. Its website says it can ship to over 200 countries and 20,000 pin codes.
The company also has a separate business vertical for ecommerce & retail and logistics. As part of its ecommerce business, MYPACCO offers automated shipping, API integration, SMS and email notifications and counts Blue Dart, Aramex, FedEx and Gati as its shipping partners. MYPACCO’s logistics business offers import and export via ocean freights, air freights, warehousing and distribution, domestic transportation and insurance.
Alibaba’s moves in India
– Alibaba Group’s affiliate company Ant Financial Services, which operates the online payment solution AliPay, bought a 25% stake in Paytm parent company One97 Communications for an undisclosed amount in February. As part of the deal, Ant Financial would provide Paytm with strategic and technical support for its business. The companies are also expected to work on new product and service offerings.
Interestingly, the Economic Times had reported at that time that Paytm will also be investing on a platform to aggregate courier companies to offer nationwide delivery services, something very similar offered by MYPACCO.
– In March, Alibaba’s stake purchase in Indian e-commerce firm Snapdeal fell through due to high valuations being sought by the online marketplace. The deal was being pegged at $500-700 million.
– In December, it was reported that Alibaba and Softbank were in talks to partner in India to avoid stepping on each others toes while investing in Indian Internet business market.