Alibaba, Ant Financial Make Follow-On Investment In Indian Payment Firm

Alibaba Group Holding Limited and its financial services arm Ant Financial Services Group have agreed to make a strategic investment in One97 Communications, the parent company of India’s largest mobile payment and commerce platform Paytm, according to a joint announcement.

Financial details are not disclosed.

The investment follows an initial investment in One97 Communications by Ant Financial in February, while Alibaba is a new investor in the latest investment.

Paytm plans to use the proceeds on scaling up and developing its mobile commerce and payment ecosystem in India.

At the same time, Alibaba and Ant Financial plan to tap opportunities in India’s fast-growing mobile e-commerce marketplace and digital finance industry.

Ant Financial has been offering strategic and technical support to Paytm since its initial investment in February. Paytm has recently crossed 100 million Paytm Wallet users who carry out over 75 million transactions every month, says the statement.

The investment marks another milestone for Alibaba in its pursuit to internationalize its businesses.

In the Indian market, Alibaba just inked another major deal last month, joining SoftBank Group Corp and Foxconn in leading a US$500 million new funding round in Indian e-commerce firm Snapdeal.

Founded in 2000, venture-backed One97 has more than 1200 employees with regional offices in Mumbai, Pune, Chennai, Bangalore and Kolkata, with global presence in Africa, Europe, Middle East and Southeast Asia.

The company is backed by investors including Chinese private equity firm SAIF Partners, Intel Capital, Sapphire Ventures and Silicon Valley Bank, according to the company’s official website.