At $5 billion, Paytm is close to Flipkart in value

Alibaba buys back less than 1% stake held by Reliance Cap in the e-commerce company for $41 million

China’s top e-commerce player and lead investor in Paytm, Alibaba, has bought a marginal stake held by Reliance Capital for $41 million. While the deal has meant a 27-fold return for the Anil Ambani-led firm, it has lifted the valuation of One97 Communications, the parent company of Paytm, to an estimated $5 billion at a time when the e-commerce universe is facing severe markdowns.    

Reliance Capital had acquired less than one per cent stake in One97 Communications for $1.51 million in 2009.  

With this, the Paytm group has risen to the second position in the e-commerce valuation