China's leading online financial services company Ant Financial Services Group has entered into a strategic partnership with One97 Communications, which runs Paytm -- India's largest mobile payment and commerce platform -- through which the former expects to take a 25 percent stake in One97 to support the growth of mobile payment and commerce platform in India.
Paytm will use the funds to grow its mobile payment ecosystem and further boost its commerce user base. The deal represents Ant Financial's first-ever investment in an Indian company, a joint statement said here Thursday.
According to sources, the deal size was to the tune of $575 million.
"With this investment, Ant Financial, which also runs Alipay Wallet, the largest mobile payment service provider in China with over 190 million users, will provide Paytm with strategic and technical support for its business," the statement said.
Ant Financial and Paytm will also build on synergies in the mobile wallet front in order to offer Indian consumers comprehensive product and services and to tap the significant potential of the India mobile payment market. Ant Financial, an affiliate of China's Alibaba Group Holding Ltd, is focused on serving small and micro enterprises as well as consumers.
"With over 1 billion people, India's payments market has vast untapped potential," said Cyril Han, vice president of Ant Financial.
"The strategic partnership with Ant Financial Services Group gives us immense pride. Ant Financial believes in the power of technology and supports great teams with innovative ideas across different markets, and will help us greatly enhance our customer proposition," Vijay Shekhar Sharma, founder & chief executive officer of One97 and Paytm said.
"I believe that together, we will change the landscape of mobile payments and commerce in our country," he added.