Alibaba, Ant Financial to exit Paytm Mall

Paytm Mall will buy the stakes at a lower valuation of nearly `100 crore, compared to its peak of over `21,000 crore 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.

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”.

Soumyarendra Barik

Soumyarendra Barik is a Special Correspondent with The Indian Express, specializing in the complex and evolving intersection of technology, policy, and society. With over five years of newsroom experience, he is a key voice in documenting how digital transformations impact the daily lives of Indian citizens. Expertise & Focus Areas Barik’s reporting delves into the regulatory and human aspects of the tech world. His core areas of focus include: The Gig Economy: He extensively covers the rights and working conditions of gig workers in India. Tech Policy & Regulation: Analysis of policy interventions that impact Big Tech companies and the broader digital ecosystem. Digital Rights: Reporting on data privacy, internet freedom, and India's prevalent digital divide. Authoritativeness & On-Ground Reporting: Barik is known for his immersive and data-driven approach to journalism. A notable example of his commitment to authentic storytelling involves him tailing a food delivery worker for over 12 hours. This investigative piece quantified the meager earnings and physical toll involved in the profession, providing a verified, ground-level perspective often missing in tech reporting. Personal Interests Outside of the newsroom, Soumyarendra is a self-confessed nerd about horology (watches), follows Formula 1 racing closely, and is an avid football fan. Find all stories by Soumyarendra Barik here. ... Read More