MUMBAI (Reuters) – Paytm E-Commerce has raised $200 million from China’s Alibaba Group and venture capital fund SAIF Partners to expand its online retail business in a market dominated by homegrown Flipkart and US tech giant Amazon.
Alibaba.com Singapore E-Commerce picked up a 36.31% stake in Paytm E-Commerce for investing $177 million, according to a regulatory filing by the Indian company that runs an online marketplace.
Alibaba and its associates are also the largest shareholders in One97 Communications, which has a stake in Paytm E-Commerce.
SAIF Partners’ $23 million investment will give it a 4.66% stake in Paytm E-Commerce, the filing showed.
Alibaba Group is looking to invest outside China as growth slows at home.
In its biggest overseas deal, Alibaba in April agreed to buy a controlling stake in Southeast Asian online retailer Lazada Group for about $1 billion.
Paytm Payments Bank, another company of the group, houses its electronic payment wallets and planned payments bank business.
Paytm has said its e-wallet service has more than 200 million clients in India.
(Reporting by Sankalp Phartiyal; Editing by Richard Borsuk)