China’s Alibaba Buys 25% Stake In Paytm for 3500 Crore

Paytm Ant Financial Services Group, which is essentially the financial services arm of Alibaba, has bought a 25 percent stake in the company, as announced by Paytm. Sources said that Alibaba bought the 25% stake for $575 million (Rs 3500 Crore) Alibaba, is the latest company to invest in the prospering e-commerce market in India. But till now no source revealed that how much the deal is worth; only reporting that the deal will be closed in the second quarter of this year.

Well…This deal is the first time investment by Ant Financial in a company in India. Ant Financial Services Group, which is a leader in China’s field of online payment and financial services, is now focused on serving small and micro enterprises and consumers. The flagship product of the company, Alipay Wallet, has over 190 million users in India. Sources revealed that Ant Financial and Paytm will also build on synergies in the mobile wallet front to offer Indian consumers comprehensive product and services; to affirm the significant potential of the Indian mobile payment market.

Cyril Han, Vice President of Ant Financial quoted that as smartphone use continues to rise high in India, they can find great opportunity in the mobile wallet space. As a leader in this field, Paytm, is best equipped to build a flexible structure in mobile payments in India. Paytm, that aroused as a mobile recharge service, but recently turns into a full market place along with its recharge and bill payments services.