Alibaba Group has sold its entire direct stake of 3.16% in One97 Communications, the parent company of the Indian digital financial services firm Paytm, for approximately Rs 1,360 crore ($185 million) in a block deal. This follows the sale of 3.1% of Alibaba's direct stake in Paytm earlier this year, bringing the total direct stake sold to 6.26%. Despite this sale, Alibaba's subsidiary firm Ant Financial still holds a 25% stake in Paytm.
The block deal involved the sale of around 2.8 crore shares, including a direct stake from Alibaba and others who may have sold for profit-booking. No response was received from Paytm or Alibaba regarding the transaction.
Paytm, which operates as a digital financial services company in India, recorded a consolidated net loss of Rs 392 crore ($53 million) in the quarter ending December 2022. Despite this loss, revenue from operations increased 42% to Rs 2,062.2 crore ($278 million) during the same period, compared to the previous year.
This sale by Alibaba comes after the company also sold its stakes in Indian food delivery service Zomato and online grocery store BigBasket in recent years. On Friday, Paytm's stock price on the Bombay Stock Exchange saw a decline of over 8% to Rs 654.25.
As one of the leading digital financial services companies in India, Paytm offers a range of services including mobile payments, financial services, and e-commerce, with a user base of over 400 million. With the continued growth and development of the Indian digital market, Paytm's potential for growth and expansion is significant.
In conclusion, the sale of Alibaba's direct stake in Paytm marks a significant moment for both companies as they navigate the rapidly growing Indian digital market. While Alibaba has sold its direct stake in the company, Ant Financial's continued presence in Paytm demonstrates the company's ongoing commitment to the Indian market.
