To expand e-retail biz, Paytm raises $200 mn from Alibaba, SAIF Partners

After this funding, Alibaba and SAIF Partners to have 36.31% and 4.66% stake in Paytm, respectively

Paytm has raised $200 million from China's Alibaba Group Holding and venture capital fund SAIF Partners to expand its online retail business in a market dominated by homegrown Flipkart and US tech giant Amazon.

Alibaba.com picked up a 36.31 per cent stake in Paytm for investing $177 million, according to a regulatory filing by the Indian company that runs an online marketplace.

Alibaba and its associates are also the largest shareholders in One97 Communications, which has a stake in Paytm.

SAIF Partners' $23 million investment will give it a 4.66 per cent stake in Paytm, the filing showed.

Alibaba Group is looking to invest outside China as growth slows at home.

 

In its biggest overseas deal, Alibaba in April agreed to buy a controlling stake in South-east Asian online retailer Lazada Group for about $1 billion.

Paytm Payments Bank, another company of the group, houses its electronic payment wallets and planned payments bank business.

Paytm has said its e-wallet service has more than 200 million clients in India.