Alibaba Exits India: Alibaba wraps up its business from India, ends stake in Paytm.
New Delhi. China’s largest e-commerce company Alibaba has made preparations to completely shut down its business from India. Today Alibaba has sold its entire stake in Paytm through a block deal. Explain that Paytm’s parent company One97 Communications has sold its remaining stake i.e. about 2.1 crore shares (or 3.4 percent equity). After this block deal, Alibaba is no longer a stakeholder in Paytm. The company sold about 3.1 per cent of its 6.26 per cent equity in Paytm in January.
After this deal, the way out of Alibaba has been completely cleared. The Chinese company had earlier sold its stake in Zomato and BigBasket. Alibaba is one of the early investors of Paytm.
Shares fall after block deal
Due to the better performance in the December quarter, the loss of Paytm has come down, after which the shares of the company are seeing a boom. The company had released the October-December 2022 results on February 3 and since then till yesterday i.e. February 9, Paytm had strengthened by more than 34 percent. Due to this, the shares of Paytm’s parent company One97 Communications fell by 9 percent.
At 2.30 pm, it was trading at Rs 653.75, down 8.25 per cent. The company had announced operating profitability in the December quarter. During this period the loss of the company has come down from Rs 779 crore in the previous year to Rs 392 crore. Due to this, the company’s shares were seeing a boom. But today it declined due to the sale of Alibaba’s shares.
Company’s revenue increased on annual basis
In October-December 2022, the revenue of Paytm’s parent company increased by 41 percent year-on-year to reach Rs 2062 crore. At the same time, its net loss decreased from Rs 778 crore to Rs 392 crore on an annual basis. Which was a relief news for the company. Its loss in September 2022 was Rs 572 crore. Paytm consolidates its leadership in offline payments with 6.1 million device deployments. While the average MTU of 89 million registered a growth of 29 percent in the month of January 2023.
