Chinese e-commerce major Alibaba, along with investment firm SAIF Partners, will pump in $200 million in the recently demerged entity of Paytm’s online commerce business.
Alibaba Singapore E-Commerce Pvt Ltd will invest $177 million in Paytm E-Commerce Pvt Ltd, the demerged unit of digital payments company, One 97 Communications that operates under Paytm brand.
The remaining amount will come from SAIF, an early investor in One 97, according to a filing with the Registrar of Companies.
The funding also marks Alibaba’s formal entry into the Indian ecommerce market, which will not only provide a major boost to Paytm’s relatively nascent ecommerce arm but will also provide all the backing required to gain a dominating market share – given Alibaba’s experience and learnings from running ecommerce businesses across 190+ countries.
Alibaba.com Singapore has picked up 4,74,155 shares, while SAIF Partners has taken 59,812 shares, according to the regulatory filings.Both Alibaba and SAIF Partners were existing investors in Paytm’s parent One97 Communications, which was recently valued at $4.8 billion when it raised $60 million from Taiwan’s Mediatek. The fresh funding for Paytm’s e-commerce platform has come at a valuation of about $1 billion , in its February 3 edition.
Alibaba also stake in Indian online marketplace Snapdeal.