Alibaba could have plans to invest some $500 million into Paytm
E-commerce in India is booming, and this fact has not gone unnoticed by Alibaba. The Chinese company, which has managed to find significant success in the mobile commerce space, has plans to invest some $500 million in an Indian startup that has a focus on the mobile space. The service, Paytm, comes from One97 Communications, one of India’s leading e-commerce and digital payments companies. The service already has a strong following, and attention from Alibaba and other investors may help make it a powerful tool in the Indian mobile commerce sector.
Alibaba continues to find success in the mobile commerce space
Paytm has not confirmed whether or not Alibaba will be investing any money, but Alibaba has been growing more aggressive with its mobile investments in recent years. Part of this has to do with how attractive the mobile commerce market has become. Last year, Alibaba saw significant growth in digital revenue through its Alipay service, which is one of the most popular mobile payments services in China. With India’s e-commerce space thriving, Alibaba could be looking to take advantage of new opportunities that are emerging in that country, especially those within the mobile sector.
Paytm has begun receiving significant attention from investors
According to The Economic Times, Paytm is already in advanced negotiations with numerous investors to raise more than $500 million in funding. Investments are reportedly led by Alibaba and Temasek Holdings. The funding would help Paytm expand its services and improve the mobile payments infrastructure it currently uses. These reports have not been confirmed by Paytm and currently serve as speculation.
Alibaba set to expand its e-commerce interests in other countries this year
Alibaba’s focus for 2015 is to expand its cross-border e-commerce interests, according to analysts from Analysys International. The company is working on breaking into emerging markets, such as Russia, Brazil, and India, in order to take advantage of new opportunities. Alibaba will be facing considerable competition from both Amazon and eBay, but the company has proven that it can overcome significant challenges with relative ease.