Emerging Markets Tech News to Know: January 2025

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EMQQ Global Performance Overview 

 

  • The EMQQ Index rose 4.2% in January.  
  • The FMQQ Index improved 1.5% for the month.  
  • The INQQ Index declined 8.7% in January. 


 

The leading positive contributors to performance for the EMQQ Index in January were China’s Pinduoduo and Sea Limited, the leading e-commerce and fintech company in Southeast Asia. Both rose 15.3% and 14.7%, respectively. The former continues to ride the wave of the global expansion of its “Temu” brand while Sea Limited goes from strength to strength as its growth rebounds while also boosting profitability.  

The two largest detractors for the month both hailed from India. Zomato, India’s leading quick-commerce company, and PB Fintech, India’s leading Insurtech firm, declined 14.3% and 17.3%, respectively. Despite the pullback, both companies remain on pace to deliver strong operational performance for 2025 as internet companies in the country continue to take market share from firms operating in more traditional sectors. In their most recent quarters, Zomato delivered 64% revenue growth, while PB Fintech saw sales rise 48%. A series of income tax breaks introduced in the recent Indian budget should also provide a boost to local consumers for the upcoming fiscal year. More details on that below.

Sources: Bloomberg, Company financials 

Emerging Markets Tech News to Know


 

At a Glance:

  • Deepseek and Alibaba Spark Renewed Interest in Chinese Tech

  • Apple Partners with Alibaba to Bring AI to iPhones in China
  • India Delivers Major Tax Cuts in Latest Budget
  • India’s Reliance Plans World’s Biggest AI Data Center
  • Chart of the Month  


 

Deepseek and Alibaba Spark Renewed Interest in Chinese Tech

Chinese startup DeepSeek, a cutting-edge artificial intelligence company, is making waves with its powerful and cost-effective AI model, which is poised to reshape China’s tech landscape. DeepSeek’s advanced model is fueling excitement around the potential of AI in China, prompting a renewed focus on how major players like Alibaba and Tencent can capitalize on this technological revolution. In response, Alibaba quickly unveiled an upgraded AI model just days after DeepSeek’s release, claiming even better results. Meanwhile, Tencent’s Hunyuan, Baidu’s Ernie Bot, and ByteDance’s Doubao are also pushing AI innovation forward, accelerating adoption across enterprises and consumers. 

The surge in AI development is expected to benefit China’s cloud computing leaders, particularly Alibaba and Tencent, as AI infrastructure depends heavily on cloud services. DeepSeek’s affordable yet highly capable model is helping democratize AI in China, encouraging widespread usage and investment in the sector. This shift will help position China’s internet giants for significant technological advancements, enabling them to compete more effectively on the global stage. With AI becoming increasingly central to the future of technology, DeepSeek’s emergence marks a pivotal moment for China’s digital economy, ensuring that its tech leaders remain at the forefront of innovation.

Apple Partners with Alibaba to Bring AI to iPhones in China

Apple is partnering with Alibaba to introduce advanced AI features for iPhone users in China, marking a significant step forward in its innovation strategy. This collaboration helps resolve months of uncertainty and positions Apple to enhance user experiences with cutting-edge AI tools. The move comes as Apple forecasts strong sales growth, fueling optimism for an iPhone demand rebound. Apple and Alibaba have submitted their co-developed AI features for regulatory approval, ensuring compliance with local requirements. The partnership leverages Alibaba’s vast data ecosystem to deliver more personalized services, reinforcing the innovative prowess of the Chinese internet giant and its huge opportunity to commercialize and monetize AI across China.

India Delivers Major Tax Cuts in Latest Budget

India’s Finance Minister Nirmala Sitharaman delivered a budget that brings great news for the middle class, offering 1 trillion rupees ($11.5 billion) in tax relief to strengthen the economy. Individuals earning up to $14,000 annually will now be exempt from income tax, up from the previous cap of $8,000. This change benefits 10 million people, raising the number of non-taxpayers to 60 million—74% of all taxpayers. Additionally, a reduced budget deficit and increased infrastructure spending signal fiscal responsibility and growth. These measures will boost household consumption, savings, and investment, fostering economic confidence and growth.

India’s Reliance Plans World’s Biggest AI Data Center

Mukesh Ambani’s Reliance is set to revolutionize the AI landscape with plans to build the world’s largest data center in Jamnagar, India, boasting an impressive 3-gigawatt capacity. This groundbreaking project, estimated at $20-$30 billion, will far surpass Microsoft’s current largest 600-megawatt facility. Reliance, India’s most valuable company, continues its ambitious growth, backed by investments from industry giants like Meta, Google, and KKR. Aiming for sustainability, the data center will be powered by renewable energy from an adjacent green complex generating solar, wind, and hydrogen power. Reliance’s collaboration with Nvidia will further strengthen India’s AI infrastructure. This visionary project positions India as a global leader in AI and green energy, driving innovation, economic growth, and technological advancement.

Chart of the Month  

India, the world’s largest country and a rising economic powerhouse, is capturing an increasing share of global GDP as it undergoes rapid structural growth. Yet, despite this impressive trajectory, U.S. investors allocate less than 1% of their portfolios to India’s growth story. This stark under-allocation reflects a significant investor blind spot, potentially causing many to miss out on substantial long-term opportunities in sectors like technology, manufacturing, and infrastructure. As India continues to evolve into a key global economic player, investors may need to reevaluate their exposure to better align with the country’s transformative potential.

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Source: Ameriprise