Alibaba to invest $177 million Paytm's e-commerce unit

By

Maverick Martins

Published
Mar 3, 2017

Chinese e-commerce major Alibaba and investment firm SAIF Partners will invest $200 million (Rs 1,350 crore) in Paytm’s e-commerce unit.

Alibaba Singapore E-Commerce Private Limited will invest $177 million in the unit while remaining amount will come from SAIF, an early investor in One 97, according to filings made with Registrar of Registrar of Companies.

Alibaba, along with its payments affiliate Alipay, had a combined shareholding of 40% in the unit before the investment. With the $177 million investment, this stake will increase by 22% to 62%.

The deal is expected to pave the way for Alibaba’s entry into the Indian market and join the e-commerce battle to take on established players like Amazon and Flipkart.

Alibaba also has less than 5% stake in Delhi-based online marketplace Snapdeal, which has slipped to a distant third position in the market.

Earlier this week, Paytm launched a separate smartphone application and website for its online marketplace business called Paytm Mall.