Paytm has partnered with Alibaba-backed online lottery company AGTech Media to develop mobile games in India. Both firms will jointly invest about $16 million in the new entity. Paytm will hold a majority stake (55 percent) and have three seats on the board, AGTech’s filing on the Hong Kong Stock Exchange revealed. Alibaba, a majority investor in Paytm, is believed to gave engineered the deal. Also Read - How to use find COVID-19 vaccine slot using Paytm appAlso Read - Jack Ma's Alibaba fined record $2.7B by China
AGTech platforms are used by Alibaba for its uses online lottery activities. The JV will oversee product development across mobile and web platforms in India. AGTech’s filing stated: “The joint venture will offer innovative mobile games and user engagement activities to Indian consumers by leveraging the group s decade-long experience in creating mobile entertainment products and Paytm Group s massive distribution network to develop mobile games in India. ALSO READ: Paytm invests in customer loyalty programme startup Mobiquest Also Read - Paytm brings '2 pe 200 cashback offer' on DTH recharges ahead of IPL 2021
Paytm boasts of 220 million consumers and has pledged to bring half a billion Indians on its platform by 2020. For Alibaba, this is the second bet in the online gaming space in India. Last year, it launched a $20 million fund for online gaming startups in the country. Through its accelerator ‘9 Apps Dev’, it seeks to help developers build, monetize and publicize their products. Alibaba takes no share of the revenues. ALSO READ: UCWeb s 9Apps launches startup fund worth $20 million for independent, startup developers
Alibaba’s bet is well-placed considering India’s online gaming market is poised to reach $1 billion by 2021, according to a Google-KPMG report. There was a 117 percent spike in searches for online games, mostly from the 16-45 age group. There are over 300 million gamers in India who offer a great opportunity to developers. Asia currently accounts for more than 60 percent of global gaming revenue in 2016. Most of it comes from China and Japan but India’s rise is just round the corner.