September 26, 2023


The Business & Finance guru

Alibaba sells remaining stake at India’s Paytm as it continues to exit marketplace Singapore E-commerce Private Ltd marketed 21.43 million shares of One particular 97 Communications, the parent business of Paytm, at 642.74 rupees apiece, according to Friday information from India’s Nationwide Stock Trade (NSE). The offer is value about 13.77 billion rupees ($167 million), according to CNN calculations.

In January, Alibaba offered about 3% of Paytm for $125 million, slicing its holdings from 6.26%, based mostly on NSE info.

With Friday’s deal, it has marketed its whole direct stake in Paytm.

Shares in One particular 97 Communications plunged practically 8% on Friday. It bounced back again slightly on Monday early morning. Alibaba and Paytm failed to instantly answer to CNN’s ask for for comment.

‘India’s Alipay’

Started in 2010, Paytm is India’s major payment platform, with far more than 300 million registered prospects and over 20 million retailers. It is backed by huge name buyers this kind of as Ant Group, an affiliate of Alibaba, Softbank (SFTBF) and Warrent Buffet’s Berkshire Hathaway (BRKA).

Alibaba and Ant Group jointly built a “strategic” expenditure in Paytm in September 2015, in an extension of the first investment decision designed by Ant in February of that yr.

At that position, Alibaba explained the investment decision would greatly enhance its capability to faucet possibilities in India’s fast-rising cellular commerce sector and electronic finance business. Paytm and Ant Team experienced been performing on “synergies” due to the fact Ant produced the first financial commitment, the enterprise said.

Ant Team, which operates China’s foremost electronic payment application Alipay, continues to be Paytm’s greatest shareholder with a 25% stake, in accordance to the most current details from Refinitiv Eikon.

Alibaba has steadily exited its investments in India, soon after New Delhi imposed constraints in 2020 that manufactured it tough for Chinese buyers to devote in Indian corporations.
China and India share a disputed border that has extensive been the supply of friction amongst New Delhi and Beijing, with tensions escalating sharply in June 2020, when hand-to-hand fighting amongst the two sides in the Himalayas resulted in the fatalities of at minimum 20 Indian and four Chinese troopers.
Past December, Indian and Chinese troops clashed all over again together the border, which at the time was the very first regarded incident in between the two nuclear-armed Asian powers in approximately two many years — though video clip afterwards emerged suggesting a beforehand unreported clash occurred in 2021.
In early 2021, Alibaba offered a significant stake in BigBasket, an online grocery retailer, to Indian conglomerate Tata Team. In Could 2022, Alibaba and Ant Group offloaded their entire stake in Paytm Mall, the e-commerce system of Paytm. In November 2022, Ant Group reportedly offered a stake of about 3% in Zomato for $200 million, in accordance to Reuters.
Alibaba alone has also been less than tension from domestic regulatory crackdowns and economic headwinds. A govt marketing campaign aimed at reining in the country’s technological innovation giants, coupled with a weak financial system, has sharply slowed gross sales expansion at the organization, battered its share price and built organization expansion more tricky.

Last 12 months, Alibaba posted flat profits growth for the initially time considering the fact that going community in 2014.

CNN’s Simone McCarthy contributed to this report.