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Deepti Sri · · 1 min readReport: Ant Group to sell stake worth $800m in IPO-bound Paytm
“China’s largest fintech conglomerate Ant Group is likely to sell at least 5% of its 30.33% stake in Paytm parent One97 Communications before the latter’s initial public offering (IPO) slated for November,” The Economic Times reported, citing sources aware of the matter.
Details:
- Ant Group will reportedly sell the 5% stake for about US$800 million. Paytm’s current valuation stands at US$16 billion. According to the sources, some other private investors in the firm may also sell small portions of their stake in Paytm.
- The share sale comes amid Paytm’s plans to list publicly as a “professionally managed company.” This requires Ant to cut its stake in the firm to below 25% as per norms set by the Securities and Exchange Board of India.
Dive deeper:
- In India, Paytm competes with Google Pay and PhonePe, among others. As of last November, Google Pay recorded 820 million Unified Payments Interface (UPI) transactions in India, making it the second-most-used digital payment method in the country after PhonePe. (Read: Should Singapore’s e-wallets be threatened by Google Pay?)
- Paytm is one of India’s highest-funded startups. (Read: Meet the 50 top-funded startups and tech companies in India)
Editing by Collin Furtado and Arpit Nayak
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