In November, the Chinese e-commerce giant Alibaba announced it was buying a stake in Paytm, a leading mobile payments platform.
It is believed that Alibaba plans to sell the e-wallet company for a reported $US8.5 billion.
In a statement, Paytm said: We believe that Alibaba is the perfect partner to partner with to accelerate growth and bring innovation to the payment industry.
Paytm’s share price rose from $US1.4 billion at the time of the Alibaba acquisition to $US6.6 billion on January 7, 2021.
Alibaba’s acquisition of Paytm was a $US30 billion move that would have brought the company to a total valuation of $US5.5 trillion.
It would have also raised the stakes of its parent, Paym.
But Alibaba was a different story.
While Alibaba bought Paytm in a deal valued at more than $US50 billion, it took a much more modest approach.
The Alibaba purchase price of Paym was only $US20 million ($US10 million in today’s dollars).
Alibaba’s initial investment was $US3 billion ($US2 billion in today, $US2.4 million in 2020) in March 2019.
By the end of this year, Alibaba had sold Paytm for $US4.4 trillion ($US3.3 billion in 2020).
The Alibaba deal, in turn, was sold for a further $US9 billion ($12.5 million in 2018) in the second quarter of 2019.
The combined price of the Paytm and Alibaba transactions would have amounted to nearly $US200 billion ($220 billion in 2018).
A year later, Alibaba announced that it had sold out of its $US40 billion ($64 billion in 2016) stake in Uber, making it the second-largest shareholder in the ride-hailing service.
It also sold its remaining stake in Wanda, which is currently worth $US60 billion ($88 billion in 2021).
Alibaba would have been left with $US45 billion ($67 billion in 2019), or around two-thirds of its entire $US100 billion ($140 billion) stake.
However, this is not the whole story.
Alibaba is not only a company with a significant stake in a popular mobile payment platform, it also owns a number of other payment services.
Among them, it owns Alibaba Pay, an app that lets users pay for things with a single tap on their smartphone, and Paytm Pay, which allows users to make payments with multiple currencies.
PayTM is also owned by Alibaba Pay.
The latter was acquired by Alibaba earlier this year for a whopping $US65 billion ($83 billion in 2022).
Paytm is one of Alibaba’s most popular payments services, with over 2.3 million monthly active users.
Paym is also one of the most popular mobile wallets on the market.
It has a total of $2.9 billion (or roughly $2 billion per month) in transactions, and is now the second most popular payment platform after Paytm.
But its business model differs from those of PayTM.
Payytm, on the other hand, offers users access to its payment services through a mobile app.
Alibaba Pay is not as popular as Paytm because its user base is more fragmented, with users of more than five different currencies.
Its user base comprises of over 1.5 percent of the world’s total mobile payment users.
While the majority of users of PayyTM are from China, the majority are from India, Australia, and other emerging markets, as well.
In 2017, Payytme users in India made up 10.6 percent of its userbase, while its user-base in China was just over 5 percent.
The growth of Paytytm in India and in China has also been a boon for Alibaba Pay’s business model.
Payttm is the third-largest app in the world, behind only Facebook Messenger and WhatsApp.
As a result, it has more users per user than all other payment apps combined.
Paytextm has also attracted a lot of attention from venture capitalists.
In May 2018, Alibaba Pay raised $US35 million ($54 million in 2019) in a $25 million seed round led by Andreessen Horowitz.
Andreessen’s chief investment officer, Michael Loeb, is the co-founder of e-tech company, Vodafone, and was previously the chief technology officer at the US Department of Homeland Security.
In December 2019, Payteetm raised $11 million ($13 million in 2022) in an equity funding round led out of the Singapore-based venture capital firm, Global Tech Partners.
In November 2021, the company announced that its mobile payments business had surpassed 50 million monthly users, with 1.4 out of every 10 payments being made by people