Paytm parent incorporates separate entity for online retail business
One97 Communications, the company which owns and operates Paytm, a mobile marketplace and digital wallet, has incorporated a separate entity for its online retail business, according to regulatory filings, in a possible prelude to a direct India presence for China’s Alibaba.
Paytm E-commerce Private Limited was set up on August 16, filings made with the Registrar of Companies on Monday, show. Vijay Shekhar Sharma, the founder and managing director of One97 Communications, has also incorporated Paytm Payments Bank Limited as a separate entity.
ET had reported earlier that Paytm will spin off its marketplace to allow China’s Alibaba Group, an investor in One97, a direct presence in India.
The new companies share a common address with One97’s Delhi office. Chinese internet giant Alibaba and its affiliate Ant Financial are the largest stakeholders, at 40%, having invested $680 million in One97.
ET reported that Paytm was in talks with Alibaba for additional capital infusion in its marketplace. The document of incorporation indicates that Paytm e-commerce will provide all services related to online marketplaces and cross-border commerce.