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Chinese E-Commerce Group Alibaba In Talks with Ele.me

Chinese e-commerce giant Alibaba Group Holding Ltd. is in talks to buy the food delivery platform Ele.me, but a deal has not been reached. “Alibaba has recently contacted all the owners of Rajax and expressed its intention to buy,” Rajax shareholder Hualian said in their statement responding to local media reports of a buyout. “However,…

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Chinese e-commerce giant Alibaba Group Holding Ltd. is in talks to buy the food delivery platform Ele.me, but a deal has not been reached.

“Alibaba has recently contacted all the owners of Rajax and expressed its intention to buy,” Rajax shareholder Hualian said in their statement responding to local media reports of a buyout. “However, the company has not currently signed any agreement to transfer any equity in Rajax to Alibaba. Key issues like price, timing, volume, and the method of any equity transfer are still under discussion.”[1]

Bloomberg says that Ele.me is believed to have been worth US$5.5 billion to US$6 billion in a May fundraising last year. If they gain control of the startup, Ele.me could be valued at as much as U$9.5 billion.

Ele.me, which translates to “Hungry?” or “Hungry Yet?” is part of a fast-growing market in China where consumers can purchase a variety of goods, from groceries to movie tickets, from their smartphone.

[1] https://retail.economictimes.indiatimes.com/news/e-commerce/e-tailing/chinas-alibaba-seeks-to-buy-food-delivery-app-ele-me-shareholder/63105920

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