Ant Group will sell its remaining 5.84% stake in Indian payments firm Paytm through block deals expected to raise 38 billion rupees (US$434 million).

The shares will be sold at a minimum price of 1,020 rupees each. Goldman Sachs India Securities and Citigroup Global Markets India are managing the transaction.

Paytm, officially known as One97 Communications, has seen several major shareholders exit in the past two years, including Berkshire Hathaway and SoftBank Group.

Ant Group previously sold a 4% stake in May and a 10.3% stake in August 2023.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ Major institutional investors have systematically exited Paytm over two years

Ant Group’s departure represents the latest in a series of high-profile investor exits that signals declining confidence in Paytm’s long-term prospects.

Warren Buffett’s Berkshire Hathaway and Japan’s SoftBank Group both divested their stakes in the past two years, indicating a trend of institutional exits 1.

This exit by major investors coincides with Paytm’s poor financial performance, including a consolidated loss of ₹5.4 billion for the quarter ending March 2025 despite operational revenue of ₹19 billion 2.

The company’s stock has declined 15.85% over the last year, reflecting broader market skepticism about its path to profitability despite raising approximately $3.48 billion in total funding 34.

When multiple sophisticated institutional investors exit within a short timeframe, it often raises concerns about a company’s business model, competitive position, or management execution.

2️⃣ Geopolitical tensions accelerate Chinese divestment from Indian fintech

Ant Group’s exit reflects a broader trend of Chinese investors withdrawing from Indian fintech companies due to regulatory pressure and deteriorating bilateral relations.

The sale follows increased scrutiny of Chinese investments in Indian tech firms, with regulators aiming to limit foreign control over critical financial infrastructure 15.

This retreat aligns with broader restrictions in India on Chinese companies, including app bans and investment limitations implemented since 2020.

Recent Paytm developments