Alibaba to invest 1,200 crores in Paytm

New Delhi March 03: Paytm a is chines app it is an E-wallet, which popular app in India, after the demonetisation digital transaction are rapidly increased in India in that paytm play an important role.

Alibaba, which already held a 40 per cent stake in Paytm’s e-commerce unit along with affiliate Ant Financial, has upped its holding to a controlling 62 per cent with the latest round of funding.

The move now pits Alibaba directly in competition with Amazon and Flipkart for a share in the Indian digital commerce market which is expected to grow to $69 billion (approx 4.7 lakh crore) by 2020.

As per filings with the Registrar of Companies, Paytm will receive another round of funding worth $23 million (Rs 153 crore) in addition to the investment by Alibaba Singapore E-Commerce Private Limited. The remaining amount will come from venture firm SAIF Partners.

There has been no official statement from Paytm on this development so far. The funding is for Paytm’s e-commerce business which the company separated from its payments unit last year.

The online marketplace was demerged from One97 Communications, the parent company of Paytm.

The latest funding now puts the value of Paytm Ecommerce at around $1 billion (Rs 6,700 crore).

For Alibaba, the competition is now directly with Amazon and homegrown Flipkart. The Indian e-commerce market, which analysts peg at around $15 billion up from $11 billion in 2015, will require Alibaba to make more investments to match the $5 billion commitment to it by Amazon.