Reliance Capital sells Paytm stake for Rs 275 crore:
Reliance Capital has sold its nearly 1 per cent stake in popular digital payments firm Paytm for Rs 275 crore to China’s Alibaba Group in a deal reaping huge gains for the Anil Ambani-led group firm. The financial services arm of Reliance Group had invested Rs 10 crore for this stake in Paytm. The deal gives a valuation of over $ 4 billion to Paytm, which is already backed by Alibaba group as a strategic investor.
Sources said that Reliance Capital has retained a stake in Paytm e-Commerce, which it had got free of cost by virtue of the investment in the parent firm. In the latest fund—raising round, Paytm e—Commerce was valued at USD 1 billion. In December last year, Paytm founder and CEO Vijay Shekhar Sharma had sold 1 per cent of his holding in One97 Communications, the parent firm of the digital payments firm, to raise about Rs 325 crore.
This money was to be pumped into the group’s payments bank operations, which are slated to commence soon. Alibaba Singapore E-commerce, along with investment firm SAIF Partners, is also slated to invest USD 200 million in Paytm’s online marketplace unit.
E- commerce (business): E-commerce refers to the purchase and sale of goods and/or services via electronic channels such as the Internet. E-commerce was first introduced in the 1960s via an electronic data interchange (EDI) on value-added networks (VANs). Electronic commerce draws on technologies such as mobile commerce, electronic funds transfer, supply chain management, Internet marketing, online transaction processing, electronic data interchange (EDI), inventory management systems, and automated data collection systems
Payment Banks: A payments bank is like any other bank, but operating on a smaller scale without involving any credit risk. In simple words, it can carry out most banking operations but can't advance loans or issue credit cards. It can accept demand deposits (up to Rs 1 lakh), offer remittance services, mobile payments/transfers/purchases and other banking services like ATM/debit cards, net banking and third party fund transfers. Dr Nachiket Mor committee suggested to introduce specialised banks or 'payments bank' to cater to the lower income groups and small businesses so that each Indian resident can have a global bank account. example- Airtel payment bank.