Report: Alibaba set to hold stake in Paytm e-commerce spin-off

Alibaba Group Holding Ltd. is making a new strategic investment — one that will up the ante in the hyper-competitive e-commerce marketplace.



The Chinese online retailer will hold a substantial stake in Paytm's new online marketplace business, Paytm E-Commerce Pvt. Ltd. Besides giving Alibaba a foothold in the Indian e-commerce marketplace, the deal also sets the stage for a three-way battle between the company, Amazon and India’s e-commerce leader Flipkart, The Times of India reported.



According to the report, Alibaba will hold an almost 40% stake in the company, while venture fund SAIF Partners and Paytm's founder Vijay Shekhar Sharma will own 30% and 20%, respectively.



An Alibaba spokesperson said in an emailed response in the report, ”India is an important emerging market with great potential and we are absolutely committed to developing it for the long term...While we are excited about addressing the market opportunity in India, we are not in a position to share any forward looking information with you at this moment.”



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