Alibaba Group Holding Ltd.’s finance arm, Ant Financial Services has acquired 25% stake in One97 Communications Ltd (Paytm).
The deal (rumored to be more than $500mn+) represents Ant Financial Services’ first investment into an Indian company.
Question : Is this an investment in One97 or Paytm? One97 is one of the leading VAS players and runs VAS business in Africa and other countries.
Ant, which runs the Alipay online payment platform, will provide Paytm with strategic and technical support for its business.
Paytm will use the fund to grow its userbase (it already has 23 million wallet users in India). Paytm is also applying for the Payments Bank license.
Ant Financial and Paytm will also build on synergies in the mobile wallet front in order to offer Indian consumers comprehensive product and services and to tap the significant potential of the India mobile payment market.
“With over 1 billion people, India’s payments market has vast untapped potential,” said Cyril Han, Vice President of Ant Financial. “As smartphone use continues to rise in India, we see great opportunity in the mobile wallet space and Paytm, as a leader in this field, is best equipped to build a mobile payments ecosystem in the country,” Han said.
“I believe that together, we will change the landscape of mobile payments and commerce in our country.” said Vijay Shekhar Sharma, Founder & CEO of One97 and Paytm.
Alipay Wallet, the mobile payment app under Ant Financial, has over 190 million users. During the Singles Day promotion on November 11th 2014, Alipay Wallet processed nearly 200 million mobile payments within 24 hours.