Millennium Post

China’s Alibaba entering India mCommerce with stake in Paytm parent

Ant Financial Services, part of the Alibaba Group, today said in a statement it has entered in a strategic agreement to acquire “a 25 per cent stake in One97 to support the growth of mobile payment and commerce platform in India”.

Alibaba is the world’s biggest e-commerce firm, which raised USD 25 billion through IPO in the US last September -- the largest by any firm globally. “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.”

Ant Financial will also provide Paytm with strategic and technical support for its business. “With over 1 billion people, India’s payments market has vast untapped potential,” Ant Financial VP Cyril Han said.

As smartphone use continues to rise, Ant Financial sees a great opportunity in the mobile wallet space in Indian and Paytm is best equipped to build a mobile payments ecosystem in the country, he added.

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, it said.
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