Alibaba to debut in India’s mobile commerce space
Chinese eCommerce giant
Ant Financial Services (AFS), part of the Alibaba Group, has announced a strategic agreement to acquire "a 25% stake in One97 to support the growth of mobile payment and commerce platform in India."
Alibaba, largest eCommerce company in the world, had garnered a sum of $25 billion through initial public offering (IPO) in the US in September 2014.
"Paytm will use the funds to grow its mobile payment ecosystem and further boost its commerce user base. The deal represents Ant Financial's first-ever investment into an Indian company," Alibaba added.
"With over 1 billion people, India's payments market has vast untapped potential," said Cyril Han, vice president, Ant Financial Services. AFS will also provide strategic and technical assistance to Paytm.
AFS was set up in October last year, and it focuses on small and micro enterprises (SMEs) and consumers. It runs businesses like Alipay, Yu'e Bao, Zhao Cai Bao and Ant Credit and Alipay Wallet.