Jack-Ma led Alibaba and Ant Financials exit Paytm Mall

Five years after the biggest expansion in the Indian e-commerce market, Jack Ma-led Alibaba and Ant Financials have sold their entire stake in Paytm E-commerce Pvt. Ltd., the parent company of Paytm Mall.

Paytm E-commerce has bought back all shares of Alibaba and Antfin (Netherlands) Holding for a total of 43.32% for Rs 42 crore, as per the company's filings. Inspired by T-mall in Alibaba, Paytm Mall raised $200 million in 2017 from Alibaba with initial funding of approximately $1 billion. In total, the company has raised more than $800 million from Alibaba, Ant Financial, SoftBank, Elevation Capital (formerly SAIF partner), and eBay.

Paytm E-commerce has announced that it will hold an extraordinary general meeting on May 23, proposing to reduce its equity capital and the equity premium account.

On May 15th, Paytm E-Commerce announced that it would focus on its main purpose, the Open Network for Digital Commerce (ONDC), to explore export business opportunities rather than traditional physical commodity e-commerce.  "Paytm e-commerce also sees the withdrawal of early investors Alibaba and Ant Group as part of a shift in the company's business direction."

Paytm Mall, which has always struggled with business planning and market position, has announced several turning points in the past. In 2021, the company recorded sales of Rs 419 crore and Rs 504 crore in losses.