National (18/01/2023): Chinese e-commerce giant Alibaba has sold its stake in Indian mobile payment and financial services company Paytm, worth $125 million, through a block deal.
The sale was carried out through Alibaba.com Singapore E-Commerce, a subsidiary of the Chinese firm.
The block deal, which took place on the National Stock Exchange of India, saw Alibaba sell over 6 million shares of Paytm at a price of $1.95 per share. The shares represent a 1.66% stake in the Indian company.
The sale comes as part of Alibaba’s ongoing strategy to streamline its global portfolio and focus on core businesses. The Chinese firm has been divesting non-core assets in recent years and has been looking to scale back its investments in India.
Paytm, which is based in Noida, Uttar Pradesh, is India’s largest mobile payment and financial services company. It offers a wide range of services including mobile payments, online shopping, and digital gold. The company has over 350 million users and has raised over $3 billion in funding to date.
The sale of Alibaba’s stake in Paytm is seen as a positive development for the Indian company, which will now have more autonomy to pursue its own growth strategy. Paytm has been expanding rapidly in recent years and is looking to expand its services to more small businesses and consumers in India.
The sale of Alibaba’s stake in Paytm is also seen as a positive development for the Indian e-commerce market, which is expected to grow significantly in the coming years. The Indian e-commerce market is projected to reach $200 billion by 2026, driven by the rapid growth of the country’s middle class and an increase in internet penetration.
Overall, the sale of Alibaba’s stake in Paytm is a significant move for both companies, as it will allow Paytm to have more autonomy in its growth strategy, and for Alibaba to focus on its core business. The move also highlights the growing potential of the Indian e-commerce market, which is expected to continue to grow in the coming years.
