Alibaba, one of Paytm’s earliest investors, reportedly sold a 3.4% stake in the fintech company today, reducing its ownership to zero. According to sources close to the situation, in today’s block deal, Chinese investor Alibaba sold its entire stake in Paytm.
According to ANI, One97 Communications Ltd (OCL), Paytm’s parent company, transferred 3.4% of its equity (or 2.1 crore shares) in a block deal on Friday.
Alibaba owned 6.26% of Paytm at the end of the December quarter, and it sold about 3% of its equity on the open market in January. Also, in the month of November 2022, the Chinese conglomerate scrapped itself of a 3% holding in the online food delivery aggregator Zomato.
Alibaba is selling off its holdings in publicly traded Indian new technology companies as a result of the sharp decline in the value of its investments. Since Alibaba had already sold its shares in Zomato and BigBasket, this most recent deal would almost mark the end of its presence in India.
Paytm, whose operating revenue increased by 42 % year over year to Rs 2,062 crore (no UPI incentive was recorded this quarter), would not be affected in the slightest by this development.
In addition, the Reserve Bank of India (RBI) has given their final approval for Paytm Payments Bank, which is Paytm’s digital banking service, to operate as the Bharat Bill Payment Operating Unit (BBPOU). Therefore, Paytm is anticipated to continue on its current path of expansion.