Alibaba, Ant Financial to exit Paytm Mall
Paytm Mall will buy stake from two of its biggest investors — China’s Alibaba and its affiliate Ant Financial — at a significantly lower valuation of nearly Rs 100 crore, compared to the company’s peak valuation of over Rs 21,000 crore (or $3 billion) in 2019.
Alibaba will offload the entirety of its 28.34 per cent stake in Paytm Mall, with its holdings currently valued at around $3.5 million, while Ant Financials will be exiting with over $1.8 million after writing off its complete investment in the online marketplace, according to a notice sent by Paytm Mall to all shareholders to hold an extraordinary general meeting (EGM) on May 23 2022.
In a statement, a Paytm Mall spokesperson said: “As part of the shift in the business direction of the company, PEPL (Paytm Mall’s parent company) also sees the exit of early investors Alibaba and Ant Group. Paytm Mall is confident of its new strategy and roadmap…” Other investors in the firm which includes the likes of SoftBank, Elevation Capital (formerly SAIF Partners), and eBay will continue to hold their respective stakes in the firm.
The development comes in the backdrop of Paytm Mall pivoting to join the government-backed Open National Digital Commerce network as its “primary focus”.