Alibaba said to exit India’s Eternal in $613m block deal

Alibaba is likely to divest its stake in India’s Eternal through a block deal worth 53.8 billion rupees (US$613 million), according to unnamed sources.

Antfin Singapore, an Alibaba unit, reportedly plans to sell its 2.08% holding at a floor price of 285 rupees (US$3.43) per share, reflecting a 4.6% discount from Eternal’s August 6, 2025 closing price.

Eternal houses Indian food delivery service Zomato and quick commerce firm Blinkit.

Neither Antfin nor Eternal commented on the reported transaction.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ Alibaba’s exit reflects broader strategic retreat from India investments

This move continues Alibaba’s systematic withdrawal from the Indian market that began years ago.

Since 2019, Alibaba paused all new investments in India and shifted to managing its existing portfolio, with the investment team no longer actively scouting for new deals 1.

The company’s India portfolio includes major players like Paytm, Zomato, BigBasket, and Snapdeal, but unlike competitors such as SoftBank and Tiger Global, Alibaba has struggled to achieve profitable exits from these investments 1.

This exit pattern reflects the challenges Chinese companies face in India’s regulatory environment and intensifying geopolitical tensions between the two countries.

The decision to sell at a 4.6% discount to market price suggests Alibaba prioritizes a clean exit over maximizing returns, indicating their strategic focus has shifted away from the Indian market entirely.

2️⃣ Quick commerce boom makes Eternal an attractive exit target despite discount pricing

Alibaba is exiting just as India’s quick commerce sector experiences explosive growth, with the market expanding from $300 million in 2022 to $7.1 billion by 2025 2.

Eternal’s subsidiary Blinkit now dominates quick commerce with a 45% market share and achieved ₹9,421 crore in gross order value during Q4 FY25, significantly outperforming competitors 3.

The quick commerce sector is projected to reach $35 billion by 2030, driven by changing consumer habits and increased reliance on ultra-fast delivery services 2.