Paytm, India’s leading digital payment platform, has become a fully Indian-owned company after its former major investor, Alibaba, sold its remaining stake in the firm.
According to data from India’s National Stock Exchange (NSE), Alibaba.com Singapore E-commerce Private Ltd sold 21.43 million shares of One 97 Communications, the parent company of Paytm, at 642.74 rupees apiece on Friday, February 13, 2023. The deal is worth about 13.77 billion rupees ($167 million).
Alibaba had previously sold about 3% of Paytm for $125 million in January, reducing its holdings from 6.26%. With Friday’s deal, it has sold its entire direct stake in Paytm.
Paytm was founded in 2010 by Vijay Shekhar Sharma, who is now the Chief Executive Officer of the firm. It has more than 300 million registered customers and over 20 million merchants. It offers a range of services, including digital wallet, UPI-based payment, e-commerce, gaming, and financial products.
Paytm’s main backer is Ant Group, an affiliate of Alibaba, which operates China’s leading digital payment app Alipay. Ant Group holds a 25% stake in Paytm, according to the most recent data from Refinitiv Eikon.
Alibaba’s exit from Paytm comes amid rising tensions between India and China over their disputed border, which have resulted in clashes and casualties on both sides. India has also imposed restrictions on Chinese investments and banned several Chinese apps, citing national security concerns.
Paytm, however, has maintained that it is a fully Indian company, with its data and servers located in India. It has also denied any involvement in online gambling, which led to its temporary removal from Google Play Store in September 2020.
Paytm is currently preparing for an initial public offering (IPO) later this year, which could value the company at up to $25 billion. It aims to raise $3 billion from the IPO, which would be the largest ever in India.
