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Alibaba Exits Paytm: Sells Remaining Stake for $1.67 Billion

Key Points:

* Alibaba has divested its entire stake in Indian digital payments provider Paytm. * The transaction was valued at approximately 137.8 billion rupees ($1.67 billion). * Alibaba's exit marks a significant shift in its investment strategy in India.

Alibaba Group Holding Limited (BABA), the Chinese e-commerce giant, has sold its remaining stake in Paytm, India's most popular digital payments application. The sale, valued at 137.8 billion rupees ($1.67 billion), is part of Alibaba's gradual divestment plan from its Indian operations.

Through a block deal, Alibaba disposed of its 3.1% stake in Paytm on Thursday. The move is viewed positively by analysts as it provides Paytm with greater independence and room for growth. Alibaba's exit also aligns with its broader investment strategy, which has shifted towards focusing on its core e-commerce business and other growth areas.

Paytm, founded in 2010, has emerged as a leading player in India's rapidly evolving digital payments landscape. The company offers a wide range of services, including mobile wallets, payments gateway, and financial services. Alibaba invested in Paytm in 2015 and had been a major shareholder until this transaction.