Alibaba's Ant Financial is not focusing on investment returns yet: Teresa Li

Interview with Spokeswoman of Ant Financial

China’s Alibaba, the world’s largest and most-valuable e-commerce company, has entered India, with its affiliate Ant Financial buying a 25 per cent stake in One97 Communications, the owner of mobile payment service Paytm, for about $200 million. In an e-mailed interview, Teresa Li, a spokeswoman for Ant, tells Sounak Mitra what it aims to achieve in India. Excerpts:

Why did you choose Paytm?

Paytm is the largest e-wallet service provider in India, a fast-growing market for payments. This tie-up will help Ant Financial tap India’s high-potential and fast-growing payment market. Also, the kind of growth Paytm has attained and managed to sustain over the past few years ensured us of making the right call at the right time.

How will you benefit from this investment? Is this a locked-in investment? If so, what is the period?

We are focusing on making this partnership work, and how we can support Paytm in boosting its mobile payment business. Our current priority is collaborating with Paytm and helping it grow into a stronger player. Now, we are not focusing on returns.

Will you offer your financial services and products in India through Paytm?

We do not have any plan to do so now. Our priority is to help Paytm grow and build a prosperous payment ecosystem.

Are you looking to invest in other Indian companies?

Our current focus is supporting Paytm. But we are open to collaborating with players in various markets.

Why did you decide to invest through Ant Financial, and not the parent company?

Ant Financial Services Group is a leader in the field of online payment and financial services. It is focused on serving micro, small and medium enterprises and consumers. Given Paytm’s achievement in the mobile payment space in India, we believe it is the right company to partner.

Will this help Paytm enter China?

The priority is helping Paytm grow in India’s sector.

What are your targets in the Indian market?

Digital payment is a huge opportunity for India and us. It is expected to touch Rs 1.2 lakh crore by December, a 40 per cent increase over Rs 85,800 crore last year, propelled by growing internet penetration, growth in e-commerce and the ease of online payments.

We think Paytm will continue to enhance its strength in the market in the long run by leveraging our technological support.

While this is the first part of the investment, Alibaba is said to be looking at putting in $575 million in Paytm. What are the parameters that would determine this investment?

We are not disclosing financial details. I am unable to comment on speculations.