Alibaba today announced its second investment in Paytm. This announcement comes after the Chinese e-commerce giant s financial arm Ant Financial Services Group bought a 25 percent stake in Paytm back in February this year. Also Read - How to book COVID-19 vaccine slot via Paytm App, get Covaxin and Covishield shots with these simple stepsAlso Read - Alert! Paytm cashback scam: Fake Paytm website, it's a trick to steal your money
While the details of the deal are under the wraps, Economic Times reports that Alibaba Holding Group has invested about $680 million (around Rs 4,450 crore) for a 20 percent stake in Paytm. Earlier this year, Ant Financial invested a reported $575 million for a 25 percent stake, which has now come down to 20 percent. This is in line with earlier reports claiming that Alibaba was looking at increasing its stake in Paytm to 40 percent by investing around Rs 4,000 crore. Also Read - 5 apps helping people get through the COVID-19 second wave: Twitter, CoWIN, Aarogya Setu
According to the publication, Paytm s existing investor Saif Partners’ stake too has reduced from 37 percent to 30 percent, while founder and CEO Vijay Shekhar Sharma s stake comes from 27 percent to 21 percent.
India is an important emerging market with strong e-commerce potential, and we look forward to partnering with Paytm to deliver innovative products and services to consumers. Supporting the success of local homegrown entrepreneurial companies has long been an important part of Alibaba Group s globalization strategy, Daniel Zhang, CEO of Alibaba Group said. This investment will further expand Alibaba Group’s global footprint to India s thriving mobile commerce market.
Paytm has grown from being a recharging app to an m-commerce platform, and will benefit from Alibaba s extensive e-commerce knowledge. For Alibaba, Paytm proves an entryway into the Indian market.
Paytm claims that it has more than 104 million mobile wallets and expects to touch the 150 million mark by March 2016. It also claims to process around 75 million transactions every month, with its wallet accepted by more than 20,000 merchants across the country.
Going forward Sharma says, Paytm is building India’s most dominant mobile payment and commerce ecosystem. With the Alibaba and Ant Financial partnerships, we look to bring half a billion Indians to the mainstream economy and help millions of small businesses leverage this large m-commerce opportunity.