Chinese multinational technology company Alibaba has sold its remaining 3.3% stake in India’s leading digital payments company Paytm for Rs 1,378 crore, following the recent block deal that saw the sale of almost 3% of its stake in Paytm. The move marks a strategic shift in Alibaba’s investments in Indian companies after it exited Snapdeal and BigBasket and may potentially exit Xpressbees.
Morgan Stanley has acquired a 0.8% stake in Paytm for Rs 314 crore, as Alibaba reduces its investments in Indian firms.
Morgan Stanley purchased a 0.8% stake in Paytm for Rs 314 crore. The sale of the stake in Paytm is in line with Alibaba’s strategy to reduce its investments in Indian companies, as it had previously exited Snapdeal and BigBasket, and potentially Xpressbees.
Paytm’s Q3FY23 results show growth
Paytm’s Q3FY23 results indicate the company’s strong performance, with operating profitability at Rs 31 crore and revenue for the quarter reaching Rs 2,062 crore, a 42% YoY growth. The company’s net loss for the quarter also decreased significantly to Rs 392.1 crore from Rs 778.5 crore in Q3FY22.
Payments revenue continues to grow
Paytm’s payments revenue grew by 21% YoY to Rs 1,197 crore, and the company continued to see growth in its payments and loan distribution business. Paytm’s consumer base expanded, with average monthly transacting users (MTU) at 89 million for January 2023, up 29% YoY.
Impact on Paytm’s future
Although the reduction of Alibaba’s stake in Paytm may impact the company’s future, Paytm is expected to continue its growth and expansion in the digital payments market in India. The company is also exploring the possibility of an IPO in the coming months, which may present further opportunities for growth.
Overall, the sale of Alibaba’s stake in Paytm represents a shift in the Chinese company’s investments in Indian firms, but Paytm’s strong Q3FY23 results and growth prospects suggest that the Indian digital payments giant will continue to thrive in the market.