India: Three Paytm investors sell 4.3% stake to Alibaba

Photo: Bloomberg

Three investors in Paytm’s owner One97 Communications Ltd—Reliance Capital, SVB (Saama Capital) and SAP Ventures—have sold their combined stake of about 4.3% to the company’s existing investor Alibaba Group Holding Ltd and its payments arm Ant Financial, two people close to the development said.

The secondary stake sale values One97 at close to $5.7-5.9 billion, the people said on condition of anonymity.

Reliance Capital, which held a stake of about 0.7% in One97, sold its stake to Chinese internet giant Alibaba for $41 million (around Rs275 crore), said the people mentioned above, asking not to be identified.

One97 did not comment on the secondary exits.

One97 was valued at about $5 billion in August-September 2016 when it raised about $60 million from new investor MediaTek.

For early investors Saama Capital and SAP, this could mean a return of more than 50x on the money they invested in One97 during 2011, when the company provided mobile internet services.

Other investors in One97 include SAIF Partners and MediaTek. Founder Vijay Shekhar Sharma continues to hold close to a 19% stake in the company.

Earlier this year, One97 separated its e-commerce business from the payments business and raised about $200 million for Paytm E-commerce Pvt. Ltd from Alibaba at a valuation of around $1 billion.

Paytm, which started out as a mobile payments and mobile recharge business, today ranks among the top three consumer internet companies in the country. The company has created a host of payment solutions in the offline and online channels where consumers can transact via the Paytm wallet.

Paytm has also aggressively built its e-commerce marketplace during the last two years by selling apparel, footwear, smartphones, bus tickets and movie tickets.

Paytm’s payments business has seen tremendous growth since the Indian government on 8 November invalidated high-value currency notes.

Founder Sharma is one of the 11 recipients of the Reserve Bank of India’s payments bank licences and is set to launch a payments bank soon.

Also Read:

India: Paytm bank gets $31m from One97, founder ahead of launch

India: Paytm’s Vijay Shekhar Sharma may sell 1% in One97 Comm to fund payments bank ops

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.