Business
Alibaba's Ant Financial to pick up 25 percent stake in Paytm
New Delhi, Feb 5
China’s leading online
financial services company Ant Financial Services Group has entered into
a strategic partnership with One97 Communications, which runs Paytm,
India’s largest mobile payment and commerce platform through which the
former expects to take a 25 percent stake in One97 to support the growth
of mobile payment and commerce platform in India.
Paytm will use
the funds to grow its mobile payment ecosystem and further boost its
commerce user base. The deal represents Ant Financial’s first-ever
investment in an Indian company, a joint statement said here Thursday.
“With
this investment, Ant Financial, which also runs Alipay Wallet, the
largest mobile payment service provider in China with over 190 million
users, will provide Paytm with strategic and technical support for its
business,†it said.
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. Ant Financial, an affiliate of
China's Alibaba Group Holding Ltd, is focused on serving small and
micro enterprises as well as consumers.
“With over 1 billion
people, India’s payments market has vast untapped potential,†said Cyril
Han, vice president of Ant Financial.
“The strategic partnership
with Ant Financial Services Group gives us immense pride. Ant Financial
believes in the power of technology and supports great teams with
innovative ideas across different markets, and will help us greatly
enhance our customer proposition,†Vijay Shekhar Sharma, founder &
chief executive officer of One97 and Paytm said.
“I believe that together, we will change the landscape of mobile payments and commerce in our country,†he added.
The companies, however, did not reveal the size of the deal.