Strengthening the roots within India, Chinese eCommerce giant, Alibaba and Ant Financial (AliPay) have made a strategic investment in Indian m-commerce giant PayTM, who just got the banking licence from the Reserve Bank of India.
There is no official statement about the amount involved, however, a report published on economic times stated the amount to be in access of $650 million. Something which is surely huge according to the Indian startup ecosystem. However, this is AliPay’s second investment in PayTM. Alipay did invest undisclosed amount in PayTM back in February this year.
With the raised sum, PayTM plans to strengthen its position as an m-commerce and payment service in India. Along with that, a portion of the funds will be invested in other sectors such as hiring manpower, technology and marketing.
Talking on the investment,
“India is an important emerging market with strong e-commerce potential, and we look forward to partnering with Paytm to deliver innovative products and services to consumers. This investment will further expand Alibaba’s global footprint to India’s thriving mobile commerce market,” said Daniel Zhang, CEO of Alibaba.
PayTM, founded in 2000 and working under One97 Communications, is one of the most popular m-commerce companies providing digital services and goods. PayTM has also come up with a digital wallet which got into news after partnering with Uber in India, when the cab service biggie was launched in the country. Paytm also provides mobile advertising and payments with the PayTM wallet and boasts of having 75 million monthly transactions with over 100 million users.
“With the partnerships with Alibaba and Ant Financial, we look to bring half a billion Indians to the mainstream economy and help millions of small businesses leverage this large m-commerce opportunity,” said Vijay Shekhar Sharma, Founder and CEO of Paytm.