Experimental feature

Listen to this article

00:00
00:00
Experimental feature

Alibaba has agreed to invest $177m in the online retail unit of Indian tech group Paytm, giving the Chinese tech group a controlling stake in one of India’s major ecommerce businesses.

The Chinese tech conglomerate is leading an investment round of $200m into Paytm Ecommerce, at a valuation of around $1bn, Paytm said on Friday. The ecommerce business was spun out as a separate entity last year by Paytm, best known for running India’s most popular digital payments platform and which is also poised to set up a quasi-bank later this year.

Alibaba and its affiliate Ant Financial had previously built up a 40 per cent stake in Paytm through investments including a $680m injection in 2015. Their combined stakes in Paytm Ecommerce will now account for the majority of its stock.

Singaporean fund SAIF Partners will account for the remaining $23m of the funding round.

Despite Alibaba’s backing, sales on Paytm’s ecommerce platform lag far behind those on market leaders Flipkart and Amazon India, analysts say.

Get alerts on Alibaba when a new story is published

Copyright The Financial Times Limited 2018. All rights reserved.

Comments have not been enabled for this article.

Follow the topics in this article