Alibaba Group is all set to announce it entry into the direct payment segment by making investment in Paytm. The group and Ant payment arm financial services group and had agreed to make an investment ranging at $680 million amounting to 40% equity in Indian mobile payment & their commerce platform payments , Ant Financial had made an initial investment in Paytm in February 2015. Alibaba will be new investors in Paytm after transaction completion.
The new funding round can be used in technology, marketing and hiring their talent. Their investment in Paytm will be enhancing their ability of Alibaba, Paytm and Ant Financial will be continuing and will be capitalizing on opportunities in mobile wallet offering comprehensive products of Indian consumers and their services tapping their significant Indian mobile payment market potential.
Here the news will be coming just month after Alibaba made an investment of $500 million in Paytm‘s peer Snapdeal with participation of Taiwanese electronics manufacturer Foxconn along with present Snapdeal investor Softbank. In May, itself Paytm had secured board’ approval on additional $375 million in Alibaba affiliate Ant Financial.
The transaction has paved its global efforts to take its ecommerce business to new heights. Daniel Zhang, Chief Executive Officer of Alibaba Group elaborated investment strategy saying, “India is an important emerging market with strong e-commerce potential, and we look forward to partnering with Paytm to deliver products and services to consumers. This move will further expand Alibaba Group’s global footprint to India’s mobile commerce market.”
According to Paytm, this crossed 100 million Paytm wallet users will be carrying out above 75 million transactions on each month. The company is expected to scale 150 millions by this March 2016 and is looking to cross monthly annulised $4 billion sales in gross merchandising value by the coming December.
Paytm had scaled close to vision of binging half billion in mainstream economy.