Alibaba to officially enter India by funding Rs 1700 crore in Paytm

An official announcement on the deal is likely to be made in coming weeks.

Alipay and Alibaba will now own over 50% from current 42% in Paytm E-commerce. Photo: Reuters

Chinese E-commerce major Alibaba is planning to officially enter Indian marketplace by investing nearly Rs 1,700 crore in the online payment solution Paytm, a media report said.

Alibaba's online payment platform, Alipay and investment firm SAIF Partners are likely to participate in the deal too. The value of deal will take Paytm's e-commerce business, which is 20% of its parent company One97 Communication's revenue to nearly $1 billion, as reported by Mint.

The e-commerce platform will spun out as a separate entity called 'Paytm E-commerce. As per the report, Alipay and Alibaba will now own over 50% from current 42% in Paytm E-commerce.

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The entity will operate as 'PayTM Mall,' named after Alibaba's T-Mall in China, or 'PayTM Bazaar' with a new site and an app, The Economic Times reported quoting a source.

An official announcement on the deal is likely to be made in coming weeks.

Last year in August-September, 2016, Paytm had raised Rs 2000 crore from Mediatek, which had led One97 Communication valued at $5 billion, the report said.

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