Alibaba Invests $200 Million in India’s Paytm

Valuing India’s Paytm E-Commerce Private Limited at about $1 billion, China’s Alibaba Group Holding Limited, will invest $180-200 million in the online retailer, taking the stake of Alibaba and its affiliate Ant Financial to more than 50 percent.

Paytm e-Commerce is an entity created by Noida-based One97 Communications Ltd., which was valued at $5 billion last year, and e-commerce constitutes 20 percent of its business. Paytm will continue to be the vehicle for Alibaba’s e-commerce play in India, and is expected to spin off the e-commerce business into a new mobile application and a separate website in February, named PaytmMall—inspired by Alibaba’s T-mall in China, reports Mint.

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Paytm, which started operations as a mobile payments and mobile recharge business, created a web of payment solutions in the offline and online channels where consumers can transact via the Paytm wallet. Founder Vijay Shekhar Sharma has India’s Central Bank’s approval to launch a payments bank by the end of February.

 

 

 

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Posted on by Gunjan Bagla
Gunjan Bagla
California-based management consultant Gunjan Bagla runs Amritt, a consulting firm helping American companies to succeed in India. Amritt is the trusted advisor for India market research, India business development, India market entry, Global Engineering, Global Technology Scouting, India R&D and Open Innovation. Gunjan is author of "Business in 21st Century India: How to Profit Today from Tomorrow’s Most Exciting Market" (Hachette Book Group, 2008), Amazon's top rated title on the subject. He has appeared as the India Expert on BBC Television, Bloomberg TV, Fox Cable Business and has been quoted in the New York Times, the Los Angeles Times, the Hollywood Reporter and Business Week for his expertise on India.

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