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Alibaba picks up stake in Chinese cloud computing startup Harmonycloud

December 11, 2019 / Eudora Wang
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Hangzhou Alibaba Venture Capital Management, an investment vehicle of Chinese e-commerce giant Alibaba Group, is picking up a 7.45 per cent stake in cloud computing startup Harmonycloud. Alibaba agreed to spend 18.1015 million yuan ($2.57 million) to purchase the stake from Chinese fintech software and services provider Sunyard, which valued the startup at 242.97 million yuan ($34.52 million), according to a document filed with the Shanghai stock exchange on late Tuesday. Sunyard, which initially injected 5 million yuan ($710,308) into Harmonycloud for the stake in July 2016, will no longer hold shares in the startup upon the completion of the transaction. The new investment represents the latest move made by Alibaba to strengthen its cloud computing business, which was launched in September 2009 and is now the largest player in China. Its cloud computing division registered revenue of 7.79 billion yuan ($1.11 billion) in the June quarter, up 66 per cent year-on-year. Harmonycloud, for...