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Understanding how ALIBABA works and makes money?


Alibaba GroupHolding Limited is a Chinese multinational company.  Specializing in e-trade, retail, and the Internet. Founded on four April 1999 in Hangzhou, Zhejiang, the employer provides consumer-to-consumer (C2C), enterprise-to-consumer (B2C), and enterprise-to-enterprise (B2B) income offerings via the internet portals, as nicely as electronic payment offerings, buying seek engines, and cloud computing offerings. It owns and operates a diverse array of groups around the arena in several sectors.


Founder Of Alibaba

Jack Ma or Ma Yun is a Chinese enterprise magnate, investor, and philanthropist. Heis the co-founder and previous govt chairman of Alibaba Group, a multinational conglomerate. Ma is a strong proponent of an open and market-pushed economy.

Ma is a worldwide ambassador for Chinese enterprise and is one of the world’s most effective people. He has a Forbes ranking of twenty-first on its “World’s Most Powerful People” listing. He additionally serves as a position version for startup groups. In 2017, Ma became ranked 2nd withinside the annual “World’s 50 GreatestLeaders” listing by Fortune. In September 2018, he announced that he would retire from Alibaba and pursue academic paintings, philanthropy, and environmental causes. The following year, Daniel Zhang succeeded him as a government chairman.
Alibab History


In the monetary year finishing, March 31, 2020, Chinese e-trade corporation Alibaba Group recorded consolidated sales of around 509.7 billion yuan. This interprets to about seventy-two billion U.S. dollars.

Revenue Model of Alibaba

Most of the sales of Alibaba is generated from center e-trade enterprise or online retail enterprise. Apart from that, Alibaba is likewise concerned in the virtual area in which it earns sales from cloud computing. Furthermore, it additionally earns its sales from show marketing, club fees, commissions, and different online offerings.

Alibaba Business Model

Alibaba has come to an extended manner because it started in 1999. It is the world’s biggest store surpassing Walmart, with operations in over 200 countries, as of April 2016,. But what precisely is the Alibaba Business Model? How did it control to benefit such success? For that allows us to first apprehend how to do Alibaba paintings and what all groups do it on their own.

Alibaba’s Business version is made from 3 principal internet portals:, Taobao, and tall. All of them serve to attach numerous styles of shoppers and sellers. However, there are 6 extra subsidiaries of Alibaba which encompass Aliexpress,1688, Alimama, Alibaba Cloud, Ant Financial, and Cainiao Network. All these subsidiaries are so nicely incorporated that they make the Alibaba organization a big ecosystem

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Alibaba is the maximum worthwhile agency withinside the world, however, a courtroom docket should extrude that.

By Dana Blankenhorn, InvestorPlaceContributor Nov 13, 2019, eleven:08 am EDT.


Number of Lead Investors 6

Number of Investors 32

Alibaba Group is funded by 32 investors. GIC and Temasek Holdings are the most recent investors.

Which investors participated in the most funding rounds?

Investor NameLead InvestorFunding Round 
GIC  NoPost-IPO Equity – Alibaba Group   
Temasek Holdings  NoPost-IPO Equity – Alibaba Group   
Group 11  Venture Round – Alibaba Group   
Glade Brook Capital Partners  NoVenture Round – Alibaba Group   
G Squared  Secondary Market – Alibaba Group   
Dragoneer Investment Group  Secondary Market – Alibaba Group   
blisce/  NoSecondary Market – Alibaba Group   
Vulcan Capital  Secondary Market – Alibaba Group   
Access Technology Ventures  Secondary Market – Alibaba Group   
Glade Brook Capital Partners  NoSecondary Market – Alibaba Group   
Source: CrunchBase

Competitor analysis


A pinnacle Alibaba competitor, Amazon changed into set up for the duration of the yr1994 and is established in Seattle, Washington. Started as a web bookstore, Amazon was transformed into a pinnacle online store worldwide. Currently, Amazon has a robust base of dependable clients who buy again and again from the online store.

Jingdong (

Also, the pinnacle Alibaba competitor, Dingdong changed into fashion for the duration of the year 1998 and was established in Beijing, China. It is normally referred to as and changed into earlier referred to as It is a web store that sells trendy merchandise, digital merchandise, audio and video merchandise, books, domestic appliances, shoes, garments, and lots of other things.


American multinational retail corporation Walmart changed into a setup for the duration of the yr1962 and is established in Arkansas, United States. It operates a sequence of hypermarkets, grocery shops, and bargain branch shops. Walmart mainly makes a specialty of offering low costs for his or her merchandise. The agency has about eleven,718 shops, and golf equipment in approximately 28 countries.

Shopify sites:

Yet some other pinnacle Alibaba competitor, Shopify is a Canadian online agency that is established in Ontario, Canada. is a pinnacle e-trade agency that lets companies sell their merchandise at one location. The Shopify’s e-trade platform affords an unused location in which the enterprise will have clean functioning of its operations.

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