- Paytm E-commerce bought back the entire stake of Alibaba Group Holding Limited (NYSE:BABA) and Ant Financials, a total of 43.32%, for ₹42 crores, the Mint reports.
- Alibaba had a 28.34% stake, and Antfin (Netherlands) Holding owned 14.98%.
- Alibaba would be exiting with over $3.5 million while Ant Group would be departing with over $1.8 million, and both will be writing off their investments, the Entracker reports.
- Paytm Mall will be paying back these investors at the share price of ₹459 per share, valuing the company at around $13 million. The price marks a whopping 99.5% haircut in its valuation compared to when Paytm was valued at $3 billion after eBay led a $160 million round in July 2019.
- Five years after making its biggest bet in India’s e-commerce market, Jack Ma-led Alibaba and Ant Financials have exited Paytm E-commerce Pvt. Ltd, the parent entity of Paytm Mall.
- Paytm E-commerce has proposed reducing the company’s equity share capital and securities premium account.
- Paytm Mall also joined the government-backed e-commerce platform, the Open Network for Digital Commerce.
- For the year ending March 2021, Paytm Mall’s revenue shrank by 43.5% to ₹277.4 crore year-on-year. Losses rose by 5.2% to ₹503.8 crore Y/Y.
- Photo by Sasha india via Flickr
