Alibaba acquires stake in India’s Paytm parent; becomes largest stake holder

Alibaba acquires stake in One97; becomes biggest stakeholder

Alibaba has acquired a less than one per cent stake in payments and e-commerce start-up One97 from Reliance Capital for US$41.25 million according to a Reuters report on Tuesday.

One97, which operates digital wallet Paytm, has been valued at US$5 billion for this deal. This acquisition comes on the heels of Alibaba leading US$200 million fund raising round in Paytm E-commerce, a marketplace platform.

Alibaba is appearing to dig in its heels as it continues its fight for the second largest e-commerce market with US giant Amazon and other local competitors such as FlipKart. This move also comes on the back of Alibaba expanding its global reach with a new Australia office and courting of Australian brands for its online marketplace.

Both One97 and Reliance Capital declined to comment on the deal, while Alibaba was not immediately reachable for comments.

Alibaba now owns the biggest stake in One97, which controls both the Paytm digital wallet and marketplace.

Join us, it's free.

Become a member to get access to:

  • Exclusive Content
  • Daily and specialised newsletters
  • Research and analysis

Join us, it’s free.

Want to read this article and others just like it? All you need to do is become a member of The Drum. Basic membership is quick, free and you will be able to receive daily news updates.