Startup Investing Helps Alibaba Expand Footprint Outside China

  • Chinese internet giant is said to back health, VR companies
  • Strategy helps Alibaba get startups using its services early

Employees and visitors sit in a lobby at the Alibaba headquarters in Hangzhou, China.

Photographer: Qilai Shen/Bloomberg
Lock
This article is for subscribers only.

Alibaba Group Holding Ltd. is becoming a more active startup investor. The Chinese internet giant is willing to spend money in hopes of finding the next Snapchat or Lyft -- so long as the target uses Alibaba’s tools and services.

Alibaba made at least two dozen investments in private companies last year, according to research firm CB Insights. The number of deals has nearly doubled since 2013, and the e-commerce company has continued spreading money around this year.