New Delhi: Chinese e-commerce major Alibaba, along with investment firm SAIF Partners, will pump in US $200 million in Paytm's online marketplace unit.
Alibaba Singapore E-Commerce Pvt Ltd will invest US $177 million in Paytm E-Commerce Pvt Ltd, the demerged unit of digital payments company, One97 Communications that operates under Paytm brand. The remaining amount will come from SAIF, an early investor in One97, according to a filing with the Registrar of Companies.
Post the investment, Alibaba Singapore E-Commerce will have a shareholding of 36.31 percent, while SAIF Partners India will own 4.66 percent in Paytm e-Commerce.
Paytm declined to comment on the matter.
This deal is expected to pave the way for the much-awaited entry of Alibaba into India, where the Chinese firm will go head-to-head with American online retail giant Amazon and homegrown player Flipkart.
Alibaba also has a stake in Indian online marketplace Snapdeal.
Earlier this week, Paytm launched a separate smartphone app and website for its online marketplace called Paytm Mall and is aggressively hiring people for expanding the operations.
One97 Communications has three units -- Paytm E-Commerce, Paytm Payments Bank (payments bank and mobile wallet service) and Paytm Mobile Solutions.
Published Date: Mar 03, 2017 08:13 am | Updated Date: Mar 03, 2017 08:36 am