Chinese e-commerce major Alibaba Group Holding Ltd, along with investment firm SAIF Partners, are set to invest $200 million in Paytm’s online marketplace unit.
Alibaba Singapore E-Commerce Pvt. Ltd will invest $177 million in Paytm E-Commerce Pvt. Ltd—a unit of Vijay Shekhar Sharma’s One 97 Communications Ltd that operates under Paytm brand. The remaining amount will come from SAIF Partners, an early investor in One97, according to a filing with the Registrar of Companies.
Mint had first reported on 3 February that Alibaba will lead a $200 million investment into Paytm E-commerce.
Post the investment, Alibaba Singapore E-Commerce will have a shareholding of 36.31% in Paytm E-commerce, while SAIF Partners India will own 4.66%.
Paytm declined to comment on the matter.
The $200 million investment is expected to pave the way for the much-awaited entry of Alibaba into India, where the Chinese firm will go head-to-head with Amazon India and Flipkart.
Alibaba also has a stake in Snapdeal, run by Jasper Infotech Pvt. Ltd.
Earlier this week, Paytm launched a separate smartphone app and website—Paytm Mall—for its online marketplace and is aggressively hiring people for expanding the operations.
One97 Communications has three units—Paytm E-Commerce, Paytm Payments Bank (payments bank and mobile wallet service) and Paytm Mobile Solutions.