Reliance Capital Sells Paytm Stake to Alibaba, Valuing Paytm at Over $4 Billion

Reliance Capital Sells Paytm Stake to Alibaba, Valuing Paytm at Over $4 Billion
Highlights
  • Reliance Capital has sold its nearly 1 percent stake in Paytm to Alibaba
  • The deal gives Paytm a valuation of over $4 billion
  • In December, Paytm CEO had sold 1 percent of his holding in One97
Advertisement

Reliance Capital has sold its nearly 1 percent stake in popular digital payments firm Paytm for Rs. 275 crores to China's Alibaba Group in a deal reaping huge gains for the Anil Ambani-led group firm.

The financial services arm of Reliance Group had invested Rs. 10 crores for this stake in Paytm.

The deal gives a valuation of over $4 billion (roughly Rs. 26,655 crores) to Paytm, which is already backed by Alibaba group as a strategic investor.

Sources said that Reliance Capital has retained a stake in Paytm e-commerce, which it had got free of cost by virtue of the investment in the parent firm. In the latest fund-raising round, Paytm e-commerce was valued at $1 billion (roughly Rs. 6,663 crores).

A Reliance Capital spokesperson declined to comment on the deal while Paytm spokesperson also did not comment.

Earlier, Reliance Capital had said it would trim its proprietary investment portfolio as part of its plans to monetise non-core assets.

In December last year, Paytm founder and CEO Vijay Shekhar Sharma had sold 1 percent of his holding in One97 Communications, the parent firm of the digital payments firm, to raise about Rs. 325 crores.

This money was to be pumped into the group's payments bank operations, which are slated to commence soon.

Alibaba Singapore E-commerce, along with investment firm SAIF Partners, is also slated to invest $200 million (roughly Rs. 1,337 crores) in Paytm's online marketplace unit.

Disclosure: Paytm's parent company One97 is an investor in NDTV's Gadgets 360.

Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.

Snapdeal's Vulcan Logistics Network to Expand to 80 Major Cities
Xiaomi India to Spruce Up Retail Network for Rural Gains
Share on Facebook Gadgets360 Twitter Share Tweet Snapchat Share Reddit Comment google-newsGoogle News
 
 

Advertisement

Follow Us

Advertisement

© Copyright Red Pixels Ventures Limited 2024. All rights reserved.
Trending Products »
Latest Tech News »