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.