Jack Ma’s Ant Group preparing to sell 30% stake in Paytm

In view of tensions between India and China, China’s billionaire businessman Jack Ma’s Alibaba subsidiary Ant Group is set to lose its stake in Indian digital payment services provider Paytm. However, both companies have not yet officially announced it.

According to media reports, Ant Group of Alibaba will soon sell its 30% stake in Paytm. It added that the company is considering selling its stake due to stiff competition in India in view of tensions.

In June this year, India banned many of China’s mobile apps after a violent clash between soldiers of the two countries along the Ladakh border. At the same time, China has tightened investment rules. The banned app also includes Alibaba’s app.

It is believed that Ant Group is now shying away from increasing its stake in any Indian company. Significantly, the company invested in the Indian digital payment services provider for the first time in 2015. A Paytm spokesperson has said that no talks have been held with Ant Group to sell the stake. Nor is any such plan being considered.

Entire group’s exit shocked China

Paytm is currently a $16 billion company. A year ago it had private funding, after which its value increased. The Ant Group is said to get $4.8 billion in return for a 30 percent stake. If the company exits Paytm, it will be a big blow for the Chinese company. It is noteworthy that Alibaba has so far invested $4 billion in India in the Indian startup.