Alibaba exits India after selling entire stake in Paytm: Report

Paytm's shares have been rallying in the last few days since it announced operating profitability in its Q3FY23 results with EBITDA before ESOP cost at Rs 31 Crore, significantly ahead of its guidance of September 2023.

Team Newsable

First Published Feb 10, 2023, 3:45 PM IST | Last Updated Feb 10, 2023, 3:45 PM IST

Chinese multinational Alibaba on Friday (February 10) sold its entire stake in Paytm in today's block deal, 3.4 percent equity (2.1 crore shares) of Paytm's parent company One97 Communications Ltd (OCL).

It is reportedly said that this sale, Alibaba is no longer a stakeholder in Paytm. The company had sold around 3.1 percent of 6.26 percent equity in Paytm in January.

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This deal almost completes Alibaba's exit from India since it had earlier sold its stakes in Zomato and BigBasket. The news will bring cheer to the market as it ends the Chinese stake holding in the homegrown Paytm.

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The fintech giant revenue from operations increased to Rs 2,062 crore (no UPI incentive recorded this quarter), a growth of 42 percent YoY. This was followed by Paytm's robust operating update of January 2023 that it filed with the stock exchange on February 8.

The company has continued to witness sustained growth momentum in its key payments and lending business. Paytm strengthened its leadership in offline payments with the deployment of 6.1 million devices while its average MTU at 89 million registered a 29% growth for the month of January 2023.

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