In Shops

China’s Alibaba Group and Ant Financial Services to make strategic investment in Paytm

Chinese e-commerce giant Alibaba Group and its financial arm Ant Financial Services will make a strategic investment in Paytm, India’s largest mobile payment & commerce platform, the two companies said on Tuesday. Ant Financial made its initial investment in Paytm in February 2015 while Alibaba will become a new investor in Paytm after the completion of the transaction.

The fresh capital infusion will allow Paytm to achieve scale and develop its vibrant mobile commerce and payment ecosystem in India and invest in marketing, technology and talent. Investing in Paytm will enhance the ability of Alibaba and Ant Financial to tap opportunities in India’s fast-growing mobile e-commerce marketplace and digital finance industry.

Ant Financial has been developing synergies with Paytm since its initial investment in February of this year. Ant Financial’s further investment in Paytm with this transaction demonstrates the company’s confidence in India’s digital payment sector.

"Ant Financial and Paytm will continue to capitalize on opportunities in mobile wallet to offer Indian consumers comprehensive products and services and to tap the significant potential of the India mobile payment market," the two companies said in a statement.

This transaction further demonstrates the commitment of Alibaba, the largest online and mobile commerce company in the world in terms of gross merchandise volume, to continue to internationalize its e-commerce business.

"Ant Financial has worked seamlessly with Paytm in the past few months and our technical teams have developed significant improvements on the user experience for Indian consumers. Ant Financial and Paytm will collaborate to capture mobile payment opportunities in India. We believe that Paytm, as a leader in this field, is best equipped to build a mobile payment ecosystem in the country," said Eric Jing, President of Ant Financial Services Group.

"India is an important emerging market with strong e-commerce potential, and we look forward to partnering with Paytm to deliver innovative products and services to consumers. Supporting the success of local homegrown entrepreneurial companies has long been an important part of Alibaba Group’s globalization strategy. This investment will further expand Alibaba Group’s global footprint to India’s thriving mobile commerce market," said Daniel Zhang, Chief Executive Officer of Alibaba Group.

Paytm’s business has grown rapidly and robustly since Ant Financial initially invested in Paytm in February 2015. Ant Financial has also been offering strategic and technical support to the company. Paytm has recently crossed 100 million Paytm Wallet users who carry out over 75 million transactions every month. With this major achievement, Paytm has inched closer towards its larger vision of bringing half a billion Indians to the mainstream economy.

Follow Retail in Asia on Facebook, Twitter and LinkedIn.

Get our top stories delivered to your inbox:

 

Stay ahead
Subscribe for free!
Register now
Stay ahead