Chinese e-commerce firm Alibaba is set to acquire Beijing-based Android app store Wandoujia, it confirmed, in a deal reportedly worth $200 million.

The store will be integrated into Alibaba’s mobile unit.

Wandoujia’s CEO and founder, Wang Junyu, said in a blog post that the business would remain independent and he hoped it would “become the strongest Android application distribution business”.

Wandoujia was valued at $1 billion back in 2014, following a financing round led by Goldman Sachs and SoftBank, the biggest shareholder in the store before the acquisition. Later that year, Alibaba tried to buy Wandoujia for $1.5 billion, but talks fell through.

It is not clear why its valuation has plummeted, although the store has faced “internal strife” and outside competition as smartphone makers like Huawei and Xiaomi set up their own rivals, according to China Daily.

Chinese internet giant Baidu also expanded its app distribution play with its acquisition of 91 Wireless in 2012 for $2 billion.

NewZoo does a monthly ranking of the top ten Chinese app stores. In May 2016, Wandoujia stood in last place with a 4 per cent market share, while Tencent and Xiaomi’s stores lead the way.

In January, Wandoujia had been in sixth place, with 6 per cent market share.

Google Play is banned in the country.