The e-commerce company Paytm paid back Rs.620 crore to its parent company One97 Communications. While the intention was to get back the assets to Paytm’s online marketplace, the company had to incur a loss of Rs.13.6 crore from this transaction. Between August 2016 and March 2017, the Alibaba financed company recorded Rs.7.3 crore in revenues while incurring the loss of Rs.13.6 crore.
While the online marketplace of the e-commerce company had demerged with the parent company One97, the latter still owns 49% stake in the payments bank unit. And, Alibaba and Ant Financial, an affiliate of Alibaba, own a majority stake in Paytm e-commerce after the former infused funds of over $117 million early this year.
The company now expects to see a gross sales of $4 billion by the end of the year and also foresees to become the platform for consolidating the online retail space in the country. This has also caused a lot of other horizontal players in the country to hold discussions regarding the same.
With its dramatic rise after the demonetization incident, Paytm now is in a good position to be the biggest online payment marketplace in the nation.