Alibaba raises stake in Paytm’s e-commerce unit with $177-million investment
Venture fund SAIF Partners, which is already a major investor in Paytm’s parent company One97 Communications, will put $23 million into the firm.
Chinese e-commerce giant Alibaba Group is leading a $200 million investment in Paytm’s online marketplace unit – while Alibaba Singapore E-Commerce Pvt Ltd will invest $177 million in Paytm E-Commerce Pvt Ltd, the remaining amount will be put in by investment firm SAIF Partners, PTI reported.
Paytm launched its Paytm Mall app earlier this week, separating its wallet and online commerce businesses. Paytm E-Commerce Pvt Ltd is a unit of Vijay Shekhar Sharma’s One97 Communications Ltd that operates under Paytm brand, and SAIF Partners is an early investor in the parent company.
With this investment, Alibaba will have 36.31% stake in Paytm E-commerce, while SAIF Partners’ shareholding will rise to 4.66%. Alibaba was in talks with Flipkart in the past to enter the Indian e-commerce market, but that deal did not work out. The company also holds 4% stake in Jasper Infotech’s Snapdeal.
One97 Communications has three units that function under the Paytm brand – Paytm E-commerce, Paytm Payments Bank and Paytm Mobile Solutions.