Valuations of Paytm downgraded in April
The Ant Group and Alibaba have stepped out from Paytm E-commerce (PEPL) Pvt Ltd., the parent company of Paytm Mall, as the firm turns its attention to the Open Network for Digital Commerce (ONDC) framework in an attempt to broaden its business opportunities. From its peak valuation of $3 billion in 2020, Paytm Mall’s value fell 99% to a mere $13 million when its marquee investors left. The restructuring process will include a capital reduction for Paytm E-commerce.
PEPL also saw early investors Alibaba and Ant Group exit the company as part of the shift in its direction. The new roadmap and strategy for Paytm Mall have the backing of existing shareholders, the company revealed in a statement.
Approximately 28.34% of the stock held by Alibaba, while 14.98% held by Ant Financial. During its last fundraising in 2020, Paytm E-commerce garnered a valuation of $3 billion at its peak, at which time it valued the company at almost Rs 100 crores. Under this agreement, Paytm E-commerce has acquired the entire stake of Alibaba and Ant Financial.
The company has denied the allegations. In partnership with ONDC, we are focused on building a sustainable business and are excited about India’s eCommerce future.
As part of the shift in the business direction of the company, PEPL also saw the exit of early investors.
Capital reduction remains not based on the valuation of the company, nor it connected to any FDI laws. The exit price of any investor(s) in the company does not reflect the valuation of the company.
To estimate our cash balance, we should look at the fact that it is higher than what stands reported in the mainstream media.