EMQQ Global Performance Overview
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The EMQQ Index fell 2.6% in December. For 2025, the index returned 20.7%.
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The FMQQ Index declined 3.9% for the month. For the year, it rose 10.8%.
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The INQQ Index pulled back 3.5% in December. For 2025, it declined 7.1%
The leading positive contributors to the EMQQ Index's performance in December were China’s Baidu and India’s MakeMyTrip. The former got a boost from a series of positive announcements, including the company’s planned expansion of its robotaxi business in Europe in partnership with Uber and Lyft. China’s leading search engine also announced plans to publicly list its internal chip unit, in another positive inflection point for the country’s burgeoning AI sector. More on both below. Meanwhile, MakeMyTrip moved higher after raising its outlook for the online India travel sector in 2026. India remains one of the most nascent major travel markets in the world, with MakeMyTrip being the clear leader in the online booking space.
The two largest detractors for the month were South Korea’s Coupang and Alibaba. Coupang fell on news of a user data breach but has since recovered after rectifying the one-off lapse. The company continues to take market share and dominate South Korea’s e-commerce market in 2025 and beyond. Alibaba cooled down in December after a strong rally in 2025 driven by significant strides in its AI business. The company remains one of the main champions of artificial intelligence in the world’s second-largest economy, with continued investment and product launches.
Sources: Bloomberg, Company financials
Emerging Markets Tech News to Know
At a Glance:
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Baidu Chip Unit Files for Marquee IPO
- India Overtakes Japan as World’s 4th Largest Economy
- Big Tech Investments in India Spotlight Country’s Bright Internet Future
- Uber, Lyft Team Up With Baidu to Start Robotaxi Trials in the UK
- Alibaba Unveils World’s Fastest-growing AI App
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Chart of the Month
Baidu Chip Unit Files for Marquee IPO
Baidu is accelerating China’s push toward AI self-sufficiency after its Kunlunxin AI-chip unit applied to list on the Hong Kong stock exchange, highlighting the strong momentum behind domestic semiconductor innovation. Often called “China’s Google,” Baidu has evolved far beyond search, rapidly expanding its Ernie chatbot and building a vertically integrated AI stack that spans models, cloud services, and proprietary hardware. The planned spinoff is designed to showcase Kunlunxin’s standalone value, broaden financing channels, and sharpen management accountability while keeping the unit within Baidu’s ecosystem. Kunlunxin joins a growing roster of Chinese chip champions such as Biren, Huawei, Cambricon, and Moore Threads that are filling the gap left by restricted foreign suppliers. Together, these efforts underscore how China’s AI sector is maturing into a globally competitive, self-reliant innovation engine.
India Overtakes Japan as World’s 4th Largest Economy
India has officially overtaken Japan to become the world’s fourth-largest economy by nominal GDP, a milestone confirmed in the government’s year-end review for 2025. With a GDP of approximately $4.18 trillion, India’s rapid expansion reflects its position as one of the fastest-growing major economies globally. Projections from the IMF suggest that India could surpass Germany to become the third-largest economy in the next few years. The nation is currently experiencing a favorable “Goldilocks phase” of strong economic growth paired with low inflation, underpinned by robust domestic demand, resilient exports, and supportive financial conditions. India’s strengthened macroeconomic fundamentals and sustained momentum underline its rising role in the global economic landscape.
Big Tech Investments in India Spotlight Country’s Bright Internet Future
Major global technology companies are placing big bets on India’s digital and AI ecosystem, signaling a transformative phase for the country’s technology landscape. Over $50 billion in investments have been announced in India’s cloud, data-center, and AI infrastructure, led by Microsoft’s $17.5 billion commitment and Amazon’s $35 billion pledge, alongside substantial plans from Google to build a large AI-enabled data hub. These investments aim to expand hyperscale computing capacity, support AI-driven services and platforms, and foster workforce development in cutting-edge technologies. India’s vast digital user base, abundant talent pool, and supportive market dynamics position it as a global hub for AI innovation and cloud infrastructure. The investments signal that India will be one of the most dynamic internet and AI markets for decades to come.
Uber, Lyft Team Up With Baidu to Start Robotaxi Trials in the UK
Uber and Lyft are partnering with China’s Baidu to begin robotaxi trials in the United Kingdom, using Baidu’s Apollo Go autonomous vehicles in a pilot expected to start in the first half of 2026 and expand through the year. The deal marks a significant step in deploying cutting-edge self-driving technology in Europe’s leading test market for autonomous mobility, leveraging the UK’s supportive regulatory framework. Baidu’s participation highlights its global expansion in driverless transport, joining trials underway in multiple countries. The initiative places Baidu at the center of a global push toward scalable, AI-driven robotaxi services and positions the company alongside other frontier players in autonomous mobility innovation.
Alibaba Unveils World’s Fastest-growing AI App
In December 2025, Alibaba’s Qwen AI app became the fastest-growing AI app in the world, with monthly active users (MAUs) jumping 149% month-over-month—the highest growth among all AI products worldwide, according to third-party trackers. Its MAUs reached 18.3 million just two weeks into its public beta, making Qwen roughly the 24th most used AI app globally despite the short public availability. Market observers say this explosive growth reflects the strength of Alibaba’s underlying large language models, which power Qwen’s multimodal capabilities like deep research, image generation, and slide creation. Qwen’s rapid adoption signals Alibaba as a serious rival to companies such as OpenAI and Google in the consumer AI assistant space.
Chart of the Month
The top 10 fastest-growing e-commerce markets globally all originated from emerging markets in 2025, with particularly strong pockets of growth in Southeast Asia, India, and Latin America. EMQQ Index companies such as Mercadolibre, Sea Limited, Eternal, and Nykaa are driving the tremendous growth in these markets with an equally strong outlook for 2026.
Source: E-Marketer