Paytm will use the funds to grow its mobile payment ecosystem and further boost its commerce user base.
Ant Financial Services Group, an affiliate of China's Alibaba Group Holding Ltd, has taken 25 per cent stake in One97 Communications (One97), which runs Paytm, to support the latter's mobile payment commerce platform in India, according to an official statement.
The companies did not provide the value of the deal, but sources said it is to the tune of $500 million. The deal values One97 Communications at more than $2 billion, making it one of the most-valuable startups in the country.
Ant Financial Services is part of China's leading e-commerce company Alibaba Group Holding.
Paytm will use the funds to grow its mobile payment ecosystem and further boost its commerce user base, the companies said in a statement.
The deal represents Ant Financial's first ever investment in an Indian company. Ant Financial, which also runs Alipay Wallet, the largest mobile payment service provider in China with over 190 million users, will give Paytm strategic and technical support for its business.
Paytm has about 23 million users, the companies said. The $2 billion valuation of operator One97 compares with the $11 billion of Flipkart Online Services Pvt Ltd, India's biggest e-commerce company.
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