SEE ALSO: India and China Hold Military Drills
China’s Alibaba to buy $550 mln stake in One97 Communications – sources
(Reuters) – China’s Alibaba Group Holding Ltd (BABA.N) and its unit Alipay are in advanced talks to buy a stake for about $550 million in India’s One97 Communications, which owns an online payment platform, sources directly involved in the transaction said.
The investment by Alibaba, the world’s largest e-commerce company, is expected to be announced by the end of this month. It will be Alibaba’s first significant investment in India’s rapidly growing online business segment.
Under the terms of the deal, Alibaba and Alipay, China’s top payment service provider controlled by Alibaba’s executive chairman Jack Ma, will hold between 30 percent and 40 pct of One97 after the investment, the sources said.
One97 runs Paytm, an e-commerce platform which consumers can access through mobile apps.
One97 would issue fresh shares to Alibaba and Alipay, which would result in the holdings of existing shareholders, including founder Vijay Shekhar Sharma, being diluted, one of the sources told Reuters.
Other investors of One97 include SAIF Partners, Intel Capital and SAP Ventures, according to its website. Paytm has more than 20 million registered users, it said.
The investment will be used to expand Paytm services, with a view to dominate the online payment business that is expected to grow rapidly in the next few years in India, one source said.
The sources declined to be named as talks for the deal are confidential. Alibaba declined to comment. A spokeswoman for One97 said the company was in the process of raising money and would make an announcement once this was complete.
Foreign investors including Japan’s SoftBank Corp (9984.T) and Temasek Holdings Pvt Ltd [TEM.UL] have invested billions of dollars in Indian e-commerce firms.
In October, SoftBank said it would invest about $10 billion in the booming Indian sector and started with the purchase of a $627 million stake in online marketplace Snapdeal. [ID:nL4N0SN4MC]
India has the world’s third-largest Internet user base, but e-commerce is still relatively underdeveloped. Global investors are betting on medium to long-term growth of this market as more people make transactions online.
Nomura estimated in a research note in July last year that India’s e-commerce industry could more than quadruple to $43 billion over the next five years.
PAYTM About Us
Paytm is here
Paytm is India’s largest mobile commerce platform. Paytm started by offering mobile recharge and utility bill payments and today it offers a full marketplace to consumers on its mobile apps. We have over 20mn registered users.
In a short span of time Paytm has scaled to more than 15 Million orders per month.Paytm is the consumer brand of India’s leading mobile internet company One97 Communications.
One97 investors include SAIF Partners, Intel Capital and SAP Ventures.We strive to maintain an open culture where everyone is a hands-on contributor and feels comfortable sharing ideas and opinions. Our team spends hours designing each new feature and obsesses about the smallest of details.Our approach is simple – to design something we’d LOVE to use ourselves.
Therefore we listen and take the time to understand our users and take their reactions most seriously.Making stuff easy and intuitive is not our only goal. In addition to usability, we strive to create accessibility, convenience and credibility. Simplicity reflects in our home page design and this mantra has been followed throughout the site and our apps.
The world is increasingly mobile: people want access from wherever they are, whenever they need it. At Paytm, you have the option of recharging and shopping from whenever, anywhere and are equipped with a secure online wallet called Paytm Cash.At team Paytm we set high goals and achieve them. And it’s all to provide YOU, the user, an experience that’s nothing short of awesome!
Defence Spending Boost : Modi’s gift to Mother India
India will boost defence spending by 12 per cent in the coming year, it was announced in Prime Minister Narendra Modi’s first budget yesterday.
India in the coming financial budget will boost the country’s defence spending by a whopping 12%. This will practically add $4.5 billion to the existing annual defense expenditure of $38 billion.
Years of inefficient governance and total neglect of the country’s defense forces by the previous Congress Govt. has made the armed forces even more desperate than they have ever been. Rampant corruption in multi-million dollar defense deals and with almost no decision making skills by former Def. Minister A K Antony has only filled pockets of the corrupt Congress government and literally emptied bullets from a soldiers magazine.
Modi Govt’s first financial budget will give the country’s armed forces the much needed boost to re-energize the entire defence sector. Prime Minister Narendra Modi has already cleared $19 billion of arms procurement proposals since taking power in May 2014 which is almost double of India’s spending on weapons in the last fiscal year as he tries to modernize the country’s military. If the current Govt. can clear pending defence purchases in a matter of months then why could the Congress Govt. not do it in years.
If the current trend continues then by the year 2020, India could emerge as the third-biggest country in terms of defence-related expenditure and will be an unmatched super power in South Asia and the Indian Ocean Region.
The country will further open the domestic weapons industry to foreign investment to help rebuild the military and narrow the gap with China.
The BJP has long called for a militarily strong India to counter any potential threats from both China and Pakistan and said it would speed up the pace of arms purchases for India’s military which is the world’s third-largest. Even at sustained elevated spending, India’s military budget is still less than a third of China’s US$145 billion expenditure last year.
The financial budget will be not only see a rise in defence expenditure but also see an ambitious deficit-cutting target which many analysts and business leaders welcomed as realistic. Government overspending would be slashed in the next three years, with the fiscal deficit reduced from a targeted 4.1 per cent of GDP this year to 3 per cent in the 2016-17 financial year.
PM Modi has made it very clear that deficit targets will not impact the momentum of modernisation of the Armed Forces. A stronger military will help the armed forces to play their role effectively in the defence of India’s strategic interests.
This is just the trailer and the real picture is just starting.
PM Modi is a true nationalist and would defend the nation against all threats, domestic and foreign. His relationship to India is that of a son for his beloved Mother.