Alibaba Group Holding Limited, Ant Financial Services Group and One97 Communications, the parent company of Paytm, India's largest mobile payment and commerce platform, have announced an agreement under which Alibaba and Ant Financial have agreed to make a strategic investment in Paytm.
Ant Financial made its initial investment in Paytm in February 2015 while Alibaba will become a new investor in Paytm after the completion of the transaction.
The fresh capital infusion will allow Paytm to achieve scale and develop its vibrant mobile commerce and payment ecosystem in India and invest in marketing, technology and talent. Investing in Paytm will enhance the ability of Alibaba and Ant Financial to tap opportunities in India's fast-growing mobile e-commerce marketplace and digital finance industry.
Ant Financial has been developing synergies with Paytm since its initial investment in February of this year. Ant Financial's further investment in Paytm with this transaction demonstrates the company's confidence in India's digital payment sector. Ant Financial and Paytm will continue to capitalize on opportunities in mobile wallet to offer Indian consumers comprehensive products and services and to tap the significant potential of the India mobile payment market.
This transaction further demonstrates the commitment of Alibaba, the largest online and mobile commerce company in the world in terms of gross merchandise volume, to continue to internationalize its e-commerce business.
Eric Jing, President of Ant Financial Services Group said, "Ant Financial has worked seamlessly with Paytm in the past few months and our technical teams have developed significant improvements on the user experience for Indian consumers. Ant Financial and Paytm will collaborate to capture mobile payment opportunities in India. We believe that Paytm, as a leader in this field, is best equipped to build a mobile payment ecosystem in the country."
Vijay Shekhar Sharma, Founder and Chief Executive Officer of Paytm said, "Paytm is building India's most dominant mobile payment and commerce ecosystem. With the Alibaba and Ant Financial partnerships, we look to bring half a billion Indians to the mainstream economy and help millions of small businesses leverage this large m-commerce opportunity. This investment by Alibaba and Ant Financial is a reaffirmation of their belief and commitment to the long term Paytm opportunity."
Paytm's business has grown rapidly and robustly since Ant Financial initially invested in Paytm in February 2015. Ant Financial has also been offering strategic and technical support to the company. Paytm has recently crossed 100 million Paytm Wallet users who carry out over 75 million transactions every month. With this major achievement, Paytm has inched closer towards its larger vision of bringing half a billion Indians to the mainstream economy.
