Paytm is making way for Alibaba’s direct entry in India, likely to spin-off business

India’s mobile payment and commerce platform Paytm is planning a spin-off in November next month and this will enable China’s Alibaba to have a direct presence in the country.

"The contours of the spinoff, paperwork and board members are being finalised and the official launch is planned in November,” ET quoted a source as saying.

"India is an important market and Paytm is an important strategic partner,” an Alibaba spokesperson told ET.

The Alibaba group is present in the Indian e-commerce market through Paytm and Snapdeal. If Alibaba plans a direct entry in the country, it will result in fierce competition. Alibaba is likely to start its business-to-consumer site Tmall in India with Kishore Biyani-led Big Bazaar.

Meanwhile, before separation from Alibaba, Paytm is going to kick-start a three-day festival sale from October 12.

"We expect 10 million transactions in three days,” Saurabh Vashishtha, vice-president for business and product management of Paytm's ecommerce marketplace told ET, adding "This year we have lined up total benefits of more than Rs 1,000 crore including cashbacks and discounts on three days of the Maha Bazar Sale.”

Paytm, last year, was valued at $3.4 billion after raising about $680 million from Alibaba and Ant Financial.