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Alibaba leads a $200 million investment into India’s payment platform Paytm

Alibaba leads a $200 million investment into India’s payment platform Paytm Science & Technology World Website

Alibaba Group will lead a $200 million investment into India’s online payment platform Paytm.

The investor Alibaba Group and private equity company SAIF Partners valued Paytm at $1.1 billion. This investment has enhanced the influence of Alibaba in fast-growing Indian market which is mainly dominated by Amazon and Flipkart.

With the popularity of smartphones, Amazon, Flipkart and Snapdeal all try to take the early move in the Indian market. All the e-commerce platforms are improving their logistics system rapidly, encouraging users to do online shopping with discount and sale promotion. Amazon committed to invest $5 billion into India. As the resident income is increasing, it is expected that India will become a major online shopping market.

Alibaba is not rushing to entering the e-commerce arena in Indian market directly, preferring to pick up stakes in the emerging enterprises, instead. Alibaba is now seeking the external markets which are controlled but growing slowly. Alibaba hopes it will make 20% to 30% of the profit from the markets outside China.  

Jack Ma, the board chairman of Alibaba believed that as the resident incomes of China and other countries in Asia are growing, Alibaba will become the intermediary business to link up the brands of the US and Europe. Alibaba’s acquisition of the Southeast Asia’s biggest e-commerce operator Lazada is the best practice of its own marketing concept.

Alibaba and its affiliate Ant Financial have held considerable shares in Paytm, whose parent company is India’s mobile information company One97 Communications. The Indian emerging unicorn is valued at more than $1.1 billion. Vijay Shekhar Sharma, the founder and Chief Executive Officer of this company, became the person in charge of this unicorn company twice.

Alibaba declined to release more details about this deal. But it replied in an e-mail that, “India is a very important emerging market with huge potential. We are committed to cooperating with the local business partners to build a long-term and sustainable business relationship.”

This article is translated and edited by Science & Technology World Website, please indicate the source when reprinting.



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