Chinese technology major Ant Group has reiterated in its IPO prospectus that it has significant influence over Paytm's holding company One97 Communications in which it has a 30.33 percent stake.
Ant’s stake in Paytm would be pegged at around $5 billion, based on its total $16 billion valuation after it raised $1 billion in November 2019, The Economic Times reported. Ant Group is a part of Alibaba Group.
Paytm founder and CEO Vijay Shekhar Sharma has been criticised as the company's major investors are Chinese. The startup has, however, maintained it is an Indian company. The Centre banned 59 Chinese apps due to national security concerns after Indian and Chinese troops clashed in Ladakh.
Besides Paytm, Ant also highlighted its investment position in Zomato – where it holds a 25 percent stake. The food delivery platform is yet to receive $100 million of the $150 million it had raised from existing backer Ant Group, the report noted.
Ant said it has made its interests known after the Centre mandated that all investments from bordering countries will need government approval, stating: "Separately, in 2020, a change in foreign investment regulation in India led to our further evaluation of the timing of our additional investment in Zomato."
Paytm and Zomato did not respond to queries, the report added.