Alibaba and Ant make “strategic” investment in Paytm

Alibaba and Ant Financial have agreed to make a “strategic investment” in India’s mobile payment and commerce platform, Paytm. Ant Financial is already an investor in Paytm, having made an initial investment in February this year.

In a statement issued today (29 September), Alibaba commented: “The fresh capital infusion will allow Paytm to achieve scale and develop its vibrant mobile commerce and payment ecosystem in India and invest in marketing, technology and talent. Investing in Paytm will enhance the ability of Alibaba and Ant Financial to tap opportunities in India’s fast-growing mobile e-commerce marketplace and digital finance industry.”

Ant Financial has been “developing synergies” with Paytm since making its initial investment and now, said Alibaba, the two companies “will continue to capitalize on opportunities in mobile wallet”.

Daniel Zhang, Chief Executive Officer of Alibaba, commented: “India is an important emerging market with strong e-commerce potential, and we look forward to partnering with Paytm to deliver innovative products and services to consumers. Supporting the success of local homegrown entrepreneurial companies has long been an important part of Alibaba Group’s globalization strategy. This investment will further expand Alibaba Group’s global footprint to India’s thriving mobile commerce market.”

Vijay Shekhar Sharma, Founder and Chief Executive Officer of Paytm, added: “Paytm is building India’s most dominant mobile payment and commerce ecosystem. With the Alibaba and Ant Financial partnerships, we look to bring half a billion Indians to the mainstream economy and help millions of small businesses leverage this large m-commerce opportunity. This investment by Alibaba and Ant Financial is a reaffirmation of their belief and commitment to the long term Paytm opportunity.”