Talks surrounding Ant Group and its plan to sell off its stake on India’s digital payment processor Paytm surfaces. Increasing tension in both home countries’ dispute becomes the main suspect of the issue. Will Paytm really lose its stake on Ant Group?
Ant Group: the plan to sell stake on Paytm is unfounded
Several sources have told Reuters that Ant Group is currently considering to sell its stake on Paytm. First invested in 2015, Ant Group currently owns 30% of Paytm’s stake. With Paytm’s value at the latest private fundraising from a year ago at around $16 billion, Ant Group is suspected to possess stake worth about $4.8 billion.
According to Reuter‘s sources, there is no details and confirmation on the possible transaction yet. Ant also reportedly has not proceeded a formal sale process. However, both Ant and Paytm responded to the claims by simply calling it unfounded rumors. Quoted from Reuters, a spokesman of Paytm said that, “there has been no discussion with any of our major shareholders ever, nor any plans, about selling their stake.”
Sources also told Reuters that increasing geopolitical tension between China and India is the main reason for the decision. Previously, India has blocked hundreds of Chinese apps. The problem grows along with the unresolved dispute, causing India to tighten its investment regulations. Additionally, Reuters‘ sources pointed out tougher competition could be another reason for Ant’s decision.
Will Ant Group eventually passes on India’s e-wallet service market?
India’s e-wallet service market has been growing strong. Online transactions and digital payments are even encouraged by Indian government. The surging demand on e-payment has led WhatsApp, Google Pay, and Walmart‘s PhonePe to expand its operations. The news surrounding Ant Group’s plan to sell Paytm’s stake rise questions on Ant’s ambition to become a global payments leader.
Read also: India Falls Into Recession After Decades
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