Anil Ambani’s Reliance Capital Sells Paytm Stake for Rs 275 cr: Reports

Reliance Capital has sold its nearly one percent stake in online wallet company Paytm to Chinese e-commerce group Alibaba for 275 crore rupees, according to media reports.

The financial services company, part of the Anil Ambani led group, had invested 10 crore rupees in Paytm, Press Trust of India (PTI) reported.

Reliance Capital will retain a stake in Paytm E-Commerce, free of cost by virtue of investing in the parent company, PTI said.

The report did not specify what percentage of stake Reliance Capital will hold in Paytm E-commerce.

A spokesman for Reliance Capital declined to comment on the report.

The company has been looking to trim its non-core assets.

The deal would give Paytm a valuation of over $4 billion and would value Paytm E-Commerce at $1 billion.

Paytm declined to comment.

Jack Ma’s Alibaba Group is a strategic investor in Paytm’s parent company One97 Communications Ltd.

Paytm continues to be a vehicle for Alibaba’s e-commerce play in India as it looks to take on rival Amazon.com Inc for a piece of India’s e-commerce pie.

Mobile wallet companies are witnessing rapid growth and interest after the government’s decision to ban old 500 rupee and 100 rupee notes in November 2016.

The move sucked out 86 percent of the currency in circulation last year, acting as catalyst for digital payment companies, which have so far relied on heavy discounting to attract customers.