Paytm, one of the leading online payments startup in India, is reportedly in talks with Alibaba-owned UCWeb to acquire its India business, in a deal that could be worth around $400-500 million.
According to the report from ET, Paytm’s CFO Madhur Deora is leading the discussions for the acquisition and both the companies have been evaluating the deal over the past few weeks.
If the deal materialises, then the acquisition of UCWeb’s India business will be the second Alibaba-owned company to get acquired by Paytm. Earlier, Paytm had acquired online ticketing platform TicketNew, a Chennai-based startup, which was owned by Alibaba. Interestingly, Alibaba and its subsidiaries hold majority stake in Paytm.
UCWeb entered the Indian market in 2011 and has become one of India’s most popular digital content distribution platform. Currently, it has a monthly active user volume of over 130 million, with a strong foothold in tier-II, tier-III and rural areas. The deal will enable Paytm to reach out to new customers, especially first-generation internet users.
Damon Xi is the head of UCWeb for India and Indonesia, and is handling the UCWeb ecosystem along with content cooperation within India and Indonesian markets. Recently, UCWeb President, Shunyan Zhu said that more than 80 per cent of its employees are Indians.