The funding round will take the stake of Alibaba and its affiliate Ant Financial in Paytm E-Commerce, an entity newly created by One97 Communications Ltd to house the online retail business, to more than 50% from 42%, livemint.com reports.
One97 was valued at USD 5 billion the last time it raised about USD 60 million from new investor Mediatek in August-September 2016. Ecommerce makes up about 20% of One97’s business.
A deal will confirm that Paytm will continue to be the vehicle for Alibaba’s ecommerce play in India. In 2016, the Chinese online retailer contemplated a standalone entry into India or an acquisition. For now, the company has decided to raise its stake in Paytm for its ecommerce ambitions to play out in India, the source cites.
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