Ant Group Set To Fully Exit Paytm with Rs 3,800 Crore Block Deal

Chinese fintech giant Ant Group is set to divest its remaining equity in Indian digital payments firm Paytm, marking a complete exit from the company it once heavily backed. According to a term sheet reviewed by Reuters, Ant will sell its final 5.84% stake in Paytm’s parent entity, One 97 Communications, through block deals estimated to raise Rs 3,800 crore (approximately $434 million).

The shares will be offered at a floor price of Rs 1,020 apiece, slightly below Paytm’s current market value. The transaction will be managed by Goldman Sachs India Securities and Citigroup Global Markets India.

This move follows a series of stake reductions by Ant Group over the past year. In August 2023, Ant offloaded a 10.3% holding, followed by a 4% sale in May 2024. With the upcoming deal, the Chinese firm will completely sever its equity ties with Paytm.

Ant Group, an affiliate of the Alibaba Group, was once among Paytm’s most prominent early backers. It had invested in the Noida-based fintech startup in its growth phase, when Paytm was rapidly expanding its footprint in mobile payments, e-commerce, and financial services. The partnership helped Paytm gain scale and credibility in the highly competitive Indian digital payments space.

However, over the last two years, Paytm’s investor base has seen significant churn. Global heavyweights such as Warren Buffett’s Berkshire Hathaway and Japan’s SoftBank Group have also exited the company, trimming their exposure amid changing market dynamics, regulatory headwinds, and portfolio realignments.

Neither Ant Group nor Paytm has issued an official statement on the latest transaction.

The sale underlines the gradual unwinding of Chinese investment in major Indian tech firms—a trend that has accelerated in recent years amid geopolitical tensions and stricter foreign investment norms.

Also Read: Paytm Q1 FY26 Results: Net Profit At Rs 122.5 Crore, Revenue Up 28% YoY—Details | Republic World
 

Recently, One 97 Communications Ltd, the parent of Paytm, reported a strong performance in Q1 FY26, posting a net profit of Rs 122.5 crore, a sharp improvement from a loss of Rs 839 crore in the same quarter last year.