Ant Group, a subsidiary of the prominent Alibaba Group, has recently divested a 4% stake in One97 Communications, the parent company of the popular digital payments platform Paytm. This strategic move, executed through block deals on a Tuesday, reflects evolving geopolitical landscapes and a shift in foreign investment strategies.
Details of the Share Sale
The shares were sold within a price bracket of Rs 823.30 to Rs 836.04, which translates to a discount of about 5-6% compared to current market rates, as reported in filings to the Bombay Stock Exchange (BSE). Following the sale, One97 Communications’ shares closed down 1.13% at Rs 856.55, marking a 13.3% decline in stock value year-to-date.
- Total shares sold: 25.51 million
- Goldman Sachs acquired 3.74 million shares (0.59% stake) for Rs 307.43 crore.
Implications for Ant Group
With this latest transaction, Ant Group’s ownership in One97 Communications will drop from 9.85% to approximately 5.85%. The deal is part of a larger trend, with several global investors, including Berkshire Hathaway and SoftBank, reducing their investments in the company over the past two years. Notably, Ant Group and Alibaba had previously invested $851 million in Paytm.
Company Overview
One97 Communications, which went public in November 2021, operates various subsidiaries, including Paytm and Paytm Money. It serves as a comprehensive digital ecosystem for consumers and merchants, offering a wide array of services such as payments, financial solutions, and commerce. The company employs over 4,500 individuals.
Recent Financial Performance
In its latest financial report, One97 Communications announced a marginal decrease in losses, narrowing down to Rs 545 crore for the quarter ending March 31, 2025, compared to Rs 551 crore in the same quarter of the previous year. However, revenue from operations saw a decline of 15.7%, dropping to Rs 1,911.5 crore from Rs 2,267.1 crore the previous year.
Chief Executive Vijay Shekhar Sharma expressed optimism about the company’s future, stating they are targeting profitability beginning in the June quarter (Q1FY26).
Conclusion
As Ant Group repositions its investment strategy, the focus remains on navigating the changing dynamics of the digital payments landscape. Paytm continues to adapt and evolve, aiming for sustainable growth and profitability in a competitive market. For further insights into digital finance trends and investment strategies, explore related articles on our site.
