Alibaba has made an acquisition as it continues to square up to the opportunity in enterprise services in China and beyond, akin to what its U.S. counterpart Amazon has done with AWS. TechCrunch has confirmed that the e-commerce and cloud services giant has acquired Teambition, a Microsoft and Tencent-backed platform for co-workers to plan and collaborate on projects, similar to Trello and Asana.
There were rumors of an acquisition circulating yesterday in Chinese media. Alibaba has now confirmed the acquisition to TechCrunch but declined to provide any other details.
Teambition had raised about $17 million in funding since 2013, with investors including Tencent, Microsoft, IDG Capital and Gobi Ventures. Gobi also manages investments on behalf of Alibaba, and that might have been one route to how the two became acquainted. Alibaba’s last acquisition in enterprise was German big data startup Data Artisans for $103 million.
As with others in the project management and collaboration space, Teambition provides users with mobile and desktop apps to interact with the service. In addition to the main planning interface, there is one designed for CRM, called Bingo, as well as a “knowledge base” where businesses can keep extra documentation and other collateral.
The deal is another sign of how Alibaba has been slowly building a business in enterprise powerhouse over the last several years as it races to keep its pole position in the Chinese market, as well as gain a stronger foothold in the wider Asian region and beyond.
In China alone, it has been estimated that enterprise services is a $1 billion opportunity, but with no clear leader at the moment across a range of verticals and segments that fall under that general umbrella, there is a lot to play for, and likely a lot more consolidation to come. (And it’s not the only one: ByteDance — more known for consumer services like TikTok — is rumored to be building a Slack competitor, and Tencent also has its sights on the sector, as does Baidu.)
As with AWS, Alibaba’s enterprise business stems out of the cloud-based infrastructure Alibaba has built for its own e-commerce powerhouse, which it has productised as a service for third parties that it calls Alibaba Cloud, which (like AWS) offers a range of cloud-storage and serving tiers to users.