Ant Group to exit Paytm with $433.72 million stake sale

China’s Ant Group is set to exit its investment in Indian payments firm Paytm by selling its remaining 5.84% equity stake through block deals totaling 38 billion rupees ($433.72 million), according to a term sheet seen by Reuters on Monday. The sale will occur at a floor price of 1,020 rupees per share, with Goldman Sachs India Securities and Citigroup Global Markets India leading the transaction.

This follows a series of share sales by Paytm, including exits by Warren Buffett’s Berkshire Hathaway and Japan’s SoftBank Group in recent years. In May and August 2023, Ant had already sold 4% and 10.3% of its stake in Paytm, respectively. Both Paytm and Ant Group did not immediately respond to Reuters’ requests for comment.

Ant Group, a fintech giant and an affiliate of Chinese conglomerate Alibaba, has played a significant role in shaping digital payments globally. The company’s innovations in mobile payments and blockchain have made it a dominant player in the fintech industry. Its influence is also being felt in Pakistan, where Ant Group has invested in local fintech supporting the growth of digital payments and financial inclusion in the country. A prominent name in that regard is widely recognised digital bank, Easypaisa, owned upto 45% by the Ant Group.