China’s fintech giant Ant Group is poised to exit India’s Paytm by divesting its remaining 5.84% equity stake in the company. According to a term sheet reviewed by Reuters, the sale is planned through block deals valued at approximately ₹3,800 crore (~$433.72 million), with a floor price of ₹1,020 per share.
The transaction will be facilitated by Goldman Sachs India Securities and Citigroup Global Markets India, who have been appointed as placement agents for the deal. This marks the final step in Ant Group’s phased withdrawal from One97 Communications, the parent company of Paytm.
Ant Group had previously scaled back its stake, selling around 4% of Paytm in May and approximately 10.3% in August 2023. With this sale, Ant will completely exit its investment in Paytm, removing all Chinese ownership from the company’s cap table.
The move aligns with a broader trend of major global investors pulling back from Paytm. In recent years, Berkshire Hathaway, SoftBank Group, and Alibaba also fully exited their positions in the fintech firm. Analysts view Ant’s departure as significant in two key ways:
- Investor Sentiment & Ownership Clarity: The exit eliminates geopolitical overhang tied to foreign ownership and could boost institutional interest as regulatory concerns diminish.
- Regulatory Advantage: This clean separation positions Paytm more favorably in light of tightened RBI hurdles for firms with Chinese investment in sensitive financial sectors.
Despite recent losses, including a net loss of ₹540 crore in Q4 FY25, Paytm’s parent company has shown promising signals. In Q1 FY26, it posted a profit of ₹122.5 crore, driven by cost discipline and a 27.7% rise in revenue to ₹1,917.5 crore.
The execution of this block deal is likely to be closely watched by stakeholders, as it signifies the end of Chinese-backed investment in the company. It may ultimately pave the way for new strategic partnerships under more favorable regulatory and public sentiment.
