Paytm e-marketplace to get $200 mn from Alibaba, SAIF; Chinese giant makes India e-comm entry
The 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.
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.
Reuters
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.
Subscribe to Moneycontrol Pro at ₹499 for the first year. Use code PRO499. Limited period offer. *T&C apply
also read
Paytm helps 2.5 lakh FASTag users with fast redressal mechanism to get a refund for wrong toll charges
According to Paytm Payments, the company has won 82 percent of cases on behalf of its FASTag users.
NPCI registers 2.29 billion UPI transaction in Feb 2021, of these 970 million transactions were processed on PhonePe
Of the total UPI transactions in the month of February, Paytm achieved over 1.2 billion monthly transactions.