Major Stake Sale Signals Ant Group’s Exit
Chinese tech giant Ant Group is set to fully exit Indian fintech leader Paytm by selling its remaining 5.84% stake. This complete divestment will be executed through block deals estimated at ₹3,800 crore (almost $434 million), with the shares offered at a floor price of ₹1,020 each. Goldman Sachs India Securities and Citigroup Global Markets India are managing the sale.
Shift Follows as Earlier Investor Exits Paytm
Ant Group, known as an early and influential backer of Paytm, had been steadily reducing its ownership since 2023. In August 2023, Ant offloaded a 10.3% holding, followed by a 4% sale in May 2024. Other major global investors—including SoftBank and Berkshire Hathaway—had also exited Paytm in the last two years, reflecting broader shifts in the company’s shareholder landscape.
Reflects Broader Changes in Fintech Landscape
This move highlights a broader trend: Chinese investment in leading Indian tech and fintech companies has waned in recent years amid tightening Indian regulations, changing market conditions, and global portfolio realignments. For Ant Group, this marks a complete retreat from one of its landmark overseas partnerships, at a time when India’s digital payments market continues rapid expansion and growing competition.
Paytm Posts Profits and Strong Growth
Despite investor churn, Paytm’s operating and financial health have shown marked improvement. In the latest quarter, Paytm’s parent One 97 Communications posted its first consolidated net profit of ₹122.5 crore, fueled by better cost control and a surge in transactions. Total revenue from operations jumped 28% to ₹1,917 crore year-on-year, while user engagement on the platform also reached new highs with an average of 74 million monthly transacting users.
What This Means for the Fintech Sector
Ant Group’s exit from Paytm is a significant moment in global fintech, underscoring ongoing recalibrations in cross-border tech investments and the evolving regulatory environment. For Paytm, this signals the dawn of a new era, potentially leading to a more diverse shareholder base and redefined international partnerships as it rides India’s digital payment boom.
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