EMQQ Global Performance Overview
- The EMQQ Index rose 8.3% in August. YTD it is up 33.7%.
- The FMQQ Index rose 1.3% for the month. YTD it is up 19.5%.
- The INQQ Index fell -1.5% in August. YTD it is down -3.1%.
The leading positive contributors to performance for the EMQQ Index in September came from China’s Alibaba and Baidu, the country’s leading e-commerce and search engine companies, respectively. Both got a major boost on the back of cheap valuations and new advances in their AI businesses, which are beginning to gain momentum and challenge peers on a global stage.
The two largest detractors for the month were Mercadolibre and Kaspi, the leading e-commerce and fintech company in Kazakhstan. Despite the pullback, both companies continue to make strong strides in their local markets, taking market share from traditional players across retail and banking. In its most recent quarter, Mercadolibre saw sales surge 34% with strength across all business lines. Meanwhile, Kaspi reported an even stronger quarter with sales rising a robust 65%.
Sources: Bloomberg, Company financials
Emerging Markets Tech News to Know
At a Glance:
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Alibaba Surges on AI Rollout
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China Sheds “Uninvestible” Label as Investors Return
- India Sees a Bumper E-Commerce Festive Season
- Nubank Applies for US Expansion
- Bellwether Tech Company in India Prepares for IPO
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Chart of the Month
Alibaba Surges on AI Rollout
Alibaba recently unveiled sweeping plans to make artificial intelligence a central pillar of its business, alongside e-commerce. The company announced new AI products and a major global expansion of its data center network, with upcoming facilities in Brazil, France, the Netherlands, and six other countries. Its new flagship AI model, Qwen3-Max, features over 1 trillion parameters and demonstrates advanced capabilities in code generation and autonomous decision-making. A second product, Qwen3-Omni, is designed for virtual and augmented reality applications.
CEO Eddie Wu highlighted surging demand for AI infrastructure, signaling increased investment in the space. Alibaba’s AI ambitions are supported by strong cloud growth—up 26% last quarter—which underscores its progress in monetizing AI services. Analysts view these developments as a strategic pivot that strengthens Alibaba’s position against domestic rivals like Tencent and DeepSeek, while also signaling its intention to compete on a global scale in the rapidly evolving AI landscape.
China Sheds “Uninvestible” Label as Investors Return
Global investors are showing renewed enthusiasm for China, drawn by the country's rapid strides in technology and artificial intelligence. After years of caution, firms like Goldman Sachs and Fidelity report increased activity and growing confidence in Chinese markets, driven by strong fundamentals rather than short-term policy moves. China’s innovation in AI, clean-tech, and semiconductors is capturing global attention, with major players like Alibaba and Cambricon leading breakthroughs. This tech-driven momentum has not only reshaped investor sentiment but also positioned China as a key player in the next wave of global innovation. The synchronized rise in foreign investment across stocks, bonds, and other assets — a rare occurrence — signals a broader shift. As risk appetite grows and global investors seek alternatives to dollar-based assets, China’s tech-led growth and favorable valuations are making it an increasingly attractive destination. The narrative has shifted from hesitation to opportunity, with AI at the forefront.
India Sees a Bumper E-Commerce Festive Season
India’s online retail market recorded a strong 32–35% growth in sales during the early days of its 2025 festive season, reflecting the sector’s accelerating momentum. High-demand categories such as smartphones, televisions, and appliances saw 30–40% growth, while fashion, beauty, and home products also reported double-digit gains. With e-commerce penetration still relatively low in India, the market holds vast untapped potential. Rapid digital adoption, increasing internet access, and a young, tech-savvy population are fueling long-term growth. The early success of festive sales this year highlights the growing confidence of Indian consumers in online shopping. As platforms scale and reach more users nationwide, India’s e-commerce sector is well-positioned for sustained growth, offering one of the most promising opportunities for expansion in global digital retail.
Nubank Applies for US Expansion
Nubank, the leading digital bank across Latin America, has applied for a U.S. banking charter, marking a significant step in its global expansion strategy. With 123 million customers across Brazil, Mexico, and Colombia, Nubank sees strong potential in serving both existing U.S.-based Latin American customers and a broader audience seeking innovative financial solutions. CEO David Vélez emphasized the opportunity to better serve U.S. users with Nubank’s digital-first approach. Co-founder Cristina Junqueira, now based in the U.S. as CEO of the new venture, will lead efforts to launch services like deposit accounts, credit cards, lending, and digital asset custody. Nubank has hired top U.S. tech talent, including former Coinbase and Snap executives, to drive innovation. With a strong brand and global ambitions, Nubank believes it is well-positioned to positively impact millions in the U.S. financial market. The move underscores how fintech solutions in emerging markets have leapfrogged their developed market peers.
Bellwether Tech Company in India Prepares for IPO
PhonePe, India’s largest digital payments platform, has filed for an IPO that could raise up to $1.5 billion, valuing the company at around $15 billion. Founded in 2015 and backed by Walmart, PhonePe offers services like UPI payments, mobile recharges, utility bill payments, and financial products through its app. With over 600 million registered users and 340 million daily transactions, it dominates India’s fast-growing digital payments market. Its business model relies on transaction fees, cross-selling financial services like insurance and mutual funds and expanding into offline merchant payments.
PhonePe aims to evolve into a full-fledged digital financial ecosystem, leveraging its massive user base and data to drive growth. As India continues to shift toward cashless transactions, PhonePe is well-positioned to benefit from the rising adoption of fintech and increasing demand for digital financial services. Its upcoming IPO would signal another key moment in India’s young internet economy.
EMQQ Global Joins CNBC To Discuss Positive Momentum in the EM Internet Sector
EMQQ Global’s CEO, Kevin Carter, recently joined CNBC to discuss the strong momentum building across Emerging Markets – from China’s AI and tech resurgence to India’s fast-growing e-commerce sector. Tune in here.
Chart of the Month
While sentiment for the Chinese tech space has strongly rebounded this year, the entire sector still trades at a lower market capitalization than most individual FAANG+ stocks. This is despite China’s internet sector making significant strides in AI this year.
