BANGALORE: The Chinese e-commerce giant Alibaba has caught the eyes of many investors with its huge raise of $21.1 billion ( 126.6 lakh crore) by listing on the U.S. stock market. However, the Indian online retailers are being skeptical about investing in it for various reasons.

Lately, Alibaba has been in talks with one of India’s e-commerce giants Snapdeal, as it is interested in India’s blooming online industry, according to TOI sources. Alibaba is considering an investment option in Snapdeal as it sizes up the online consumer market of India.

"India is a huge opportunity for Alibaba. Eventually it will look at entering the business-to-consumer space in India and talks are on," said a source who is directly involved with the matter.

Alibaba, which is estimated to be valued at over $165 billion by the end of its initial public offer, discussed a possible investment with Snapdeal, although both firms are yet to reach any deal.

As of now, Alibaba has only been linking India merchants with overseas buyers and sellers. If the deal between Snapdeal and Alibaba comes to a finale, it will directly be competing with the market leaders of Flipkart and Amazon. Though Alibaba would be a late entrant in the Indian market, it has got its edge because of its sales size—Alibaba’s sales are bigger than Amazon and eBay put together.

"We are currently in a quiet period," said Pamela Munoz, Manager, International Corporate Communications at Alibaba.

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