Alibaba Group Holding Limited, Ant Financial Services Group and One97 Communications, the parent company of Paytm announced today an agreement under which Alibaba and Ant Financial have agreed to make a strategic investment in Paytm upto $680mn (for 40% equity in total).
Ant Financial made its initial investment in Paytm in February 2015 while Alibaba will become a new investor in Paytm after the completion of the transaction.
The fresh capital infusion will allow Paytm to achieve scale and develop its vibrant mobile commerce and payment ecosystem in India and invest in marketing, technology and talent.
Investing in Paytm will enhance the ability of Alibaba and Ant Financial to tap opportunities in India’s fast-growing mobile e-commerce marketplace and digital finance industry (Paytm now has payment bank license).
“India is an important emerging market with strong e-commerce potential, and we look forward to partnering with Paytm to deliver innovative products and services to consumers.
Supporting the success of local homegrown entrepreneurial companies has long been an important part of Alibaba Group’s globalization strategy. This investment will further expand Alibaba Group’s global footprint to India’s thriving mobile commerce market.” Daniel Zhang, Chief Executive Officer of Alibaba Group