Reliance Capital converted Rs. 10 crores to Rs. 275 crores by selling 1% of its stake in Paytm. It was in the year 2010 when Reliance bought this stake for Rs. 10 crores and now they sold the same to Chinese e-commerce giant Alibaba group which is the parent company for Paytm at Rs. 275 crores.
This appears to deepen the Chinese e-commerce Company, its commitment towards Indian markets.
Paytm was recently split into two groups – Paytm E-Commerce Pvt., Ltd., and Paytm Payments Bank. Founder of Paytm Vijay Shekhar Sharma sold 1% (Rs. 325 crores) of his personal stake in One97 to invest US $ 48 million in the recently formed Paytm Payments Bank which includes its digital wallet.
The Payments Bank is now the talk of the town. The new entity in India holds deposits for payments but cannot give out loans. It basically solves the problem of low capacity of wallets which forces frequent top-ups.
Mukesh Ambani’s Reliance Jio Money is a new competitor to the Paytm Wallet. Reliance Jio too started their own Payments Bank.