Alibaba Group In Talks To Buy Stake In India’s Paytm: Sources

Alibaba is simultaneously negotiating to invest over $600 million in India’s largest smartphone maker Micromax.

Alibaba Group Holding Ltd. (NYSE:BABA) is furthering its Indian business with an increased stake in e-retailer, Paytm, reports The Economic Times (ET). A spokeswoman for Paytm also declined to comment, but said the group regularly engaged with investors on “various funding opportunities”.

One supply along with guide expertise in the topic said the brand new bargain will see Alibaba directly have around usd600 mil to produce a impart in Paytm which may grab the Chinese band’s whole securing to around 40 proportion of a given Indian repayments agency. The Chinese giant plans to create an ecosystem through investments in companies that have large consumer footprints. Valuations have been soaring in this space, best exemplified by sector leader Flipkart, which raised money in May past year at a valuation of $1 billion and is now in the market to raise fresh funds at a target value of $16 billion.

Morgan Stanely believes that online customers in India are expected to reach a size of $137 billion by 2020.

Alibaba’s monetary arm Ant Financial, which runs the Alipay online payment stage, is now a speculator in Paytm’s guardian, having concurred in February to purchase a 25% stake.

China’s Alibaba is in “advanced talks” to buy a stake in India m-commerce firm Paytm, as the country’s mobile payments market looks set for rapid expansion.

Alibaba Group with this investment will become the biggest shareholder in the company, although Vijay Shekhar Sharma, 37, who founded One97 that owns Paytm will still own more than what his founder peers in rivals Flipkart and Snapdeal own in their firms. Ant Financial also made a similar statement when inquired.