The annual revenue of Alibaba Group for 2019 was CNY 376,84 billion ($54.5 billion U.S. dollars) and is getting closer to CNY 500 billion. This is according to a recent report released by Statista informing the annual revenue of the Alibaba Group in the fiscal year ending on March 31, 2019.

Can Alibaba Surpass CNY 500 Billion Revenue?

Alibaba, a recognized Chinese multinational conglomerate in the e-commerce industry, is getting closer to the CNY 500 billion annual revenue.

As per the report, the company registered an increase in revenue between 2018 and 2019 of over 50% from CNY 250,26 billion. If the company registers a rise of 33% in revenue during the current fiscal year, it would be possible for it to surpass CNY 500 billion.

In the last four years, the company has expanded its revenue at a speed of 50% per year. An increase of 33% is a entirely possible scenario for Alibaba Group.

Nevertheless, there are several challenges that the conglomerate would need to face if it wants to surpass this goal.

The current economic slowdown in China and the world is one of the main issues that could reduce the company’s revenue. Moreover, the firm would also have to deal with increased economic tensions between the United States and China.

Alibaba Group Holding Ltd (NYSE: BABA) shares surged 3.71% in the last 24 hours to $169.48 per share. Since the beginning of the year, its share price rose by 24%.

The number of active consumers across Alibaba’s online shopping properties have been increasing without pause since the second quarter of 2014. Since then, the number of annual active users surged by 141% from 279 million to 674 million active buyers this second quarter.

A more significant number of active buyers would have a positive impact on the company’s revenue for the current fiscal year. This could eventually help the firm reach the CNY 500 billion goal by April 2020.

The monetization model of the group relies on online marketing services such as P2P marketing services, display marketing, and promoted selling. Furthermore, the company holds stakes in the online video company called Youku Tudou and the entertainment company Alibaba pictures.