Alibaba Group is in talk to increase its stake by 40 percent from 25 percent with the Indian e-trailer, Paytm.
According to a new report by The Economic Times, Alibaba which first bought stakes at Paytm earlier this year, is in advanced talk with the firm by negotiating to invest over $600 million (approx Rs. 4,000 crore) to get a 20 percent additional stake.
The fresh investment includes an outstanding share of the previous transaction, where Alibaba Group was to have pumped in another $375 million, will see Paytm being valued at $3.7 billon (approx Rs. 23, 600 crore).
"Paytm is expected to be Alibaba's e-commerce play in India. The plan is to create an ecosystem through companies that have large consumer touchpoints," The Economic Times reported quoting the source familiar with the deal.
Its clear that, Alibaba wants to create an ecosystem of mobile devices, operating systems, electronic payment solution and services.
In an earlier report by Economic Times, Alibaba is in talk with Indian smartphone maker, Micromax, to invest about $700 million (Approx Rs. 4,200 crore) with a deal of 20 to 25 percent of stake to Alibaba.