China's Ant Group Sells $246 Million Worth of Paytm Shares

Ant Group Sells 25.5 Million Paytm Shares in Block Deal

New Delhi. In another major divestment move, China's Ant Group has offloaded 25.5 million shares of Indian fintech giant Paytm through a block trade, raising approximately $246 million (Rs 2,098 crore). The shares were sold at Rs 823.10 ($9.69) apiece, according to a term sheet reviewed by Reuters. This price is slightly above the Rs 809.75 projected earlier, which had estimated the deal value at around $242 million for a 4% stake.

Ongoing Stake Reduction Amid Regulatory Pressure

Ant Group, the fintech arm of China’s Alibaba Group, has been steadily paring down its stake in Paytm’s parent company, One97 Communications, in response to shifting strategic priorities and increasing regulatory pressures in both China and India. This latest offload marks a continued reduction of Ant’s holdings, which stood at 9.85% as of March 2025 via its Netherlands-based investment entity, Antfin.

Previous Sell-Offs and Strategic Retreat

This is not the first major sell-off by Ant Group. In August 2023, the company sold a 10.3% stake to Paytm’s founder and CEO, Vijay Shekhar Sharma. Since then, the Chinese fintech giant has been gradually reducing its footprint in the Indian market. The sale was managed by global investment banks Goldman Sachs and Citigroup.

Investor Exit Trends in Paytm

Ant’s exit follows a trend of prominent investors stepping back from Paytm. In the past two years, both Berkshire Hathaway and SoftBank Group have also exited their positions, signaling broader investor caution in India’s volatile fintech landscape.

Paytm's Ongoing Financial Challenges

Meanwhile, Paytm continues to face financial headwinds. Last week, One97 Communications reported a consolidated net loss of Rs 540 crore for the fourth quarter of FY25, a marginal improvement from the Rs 550 crore loss in the same period last year. However, the loss widened from Rs 208 crore in the previous quarter, largely due to a one-time employee stock option expense.

Market Reaction and Strategic Restructuring

The stock has remained under pressure, reflecting investor concerns over profitability and evolving regulatory oversight in India’s fintech sector. The company is also in the process of restructuring its business lines to focus more on core payments and merchant services.

What’s Next for Paytm’s Ownership Structure?

With Ant’s latest sale, attention now turns to the future of Paytm’s ownership and whether further strategic investments or exits are on the horizon.