Eternal Bulk Deal: Antfin Divests ₹4,097 Crore Stake in Paytm Parent One97 Communications
In a major development in the Indian stock market, Antfin (Netherlands) Holding B.V., a part of the Chinese tech conglomerate Alibaba Group, has executed a significant bulk deal involving the offloading of shares worth ₹4,097 crore in One97 Communications, the parent company of digital payments giant Paytm.
This strategic move marks a new chapter in Ant Group’s gradual exit from Indian investments and underscores broader shifts in foreign investor sentiment towards Indian fintech.
The Deal at a Glance
- Seller: Antfin (Netherlands) Holding B.V.
- Stake Sold: Approximately 3.6 crore shares of One97 Communications
- Deal Value: ₹4,097 crore (approx.)
- Average Price Per Share: Around ₹1,133
- Mode of Transaction: Bulk deal on Indian stock exchanges
- Date: August 7, 2025
This transaction constitutes one of the largest bulk deals in recent quarters and is indicative of Antfin’s intent to continue reducing its footprint in Paytm.
Who Bought the Stake?
While specific buyer identities were not disclosed at the time of reporting, market speculation points toward a mix of institutional investors and domestic mutual funds who are bullish on Paytm’s future prospects. Given the strategic nature of the stake sale, it is believed that no single entity has acquired a controlling interest.
Impact on Paytm Stock
In the immediate aftermath of the announcement:
- Paytm’s stock witnessed a marginal dip during early trading hours due to profit-booking.
- However, it recovered quickly, as market analysts suggested that the overhang of a large foreign investor exiting may actually boost investor confidence in the long run.
Background: Antfin’s Investment in Paytm
Antfin first invested in One97 Communications in 2015, when Paytm was still a rising player in India’s digital payments ecosystem. At its peak, Antfin held over 29% stake in the company. However, over the years, especially after the India-China border tensions in 2020, there has been mounting regulatory and political pressure on Chinese investments in Indian tech companies.
In response, Ant Group began trimming its holdings. This bulk deal is part of that ongoing strategy to reduce exposure while allowing Indian and global investors to take a larger role.
What This Means for Investors
1. Foreign Exit Creates Room for Domestic Participation
With Antfin stepping back, it creates space for long-term institutional investors to build positions in Paytm, which is now focusing on profitability and sustainable growth.
2. Reduced Regulatory Overhang
With the exit of a prominent Chinese investor, regulatory concerns around foreign ownership — especially from neighbouring countries — may subside, allowing Paytm to focus more on business strategy.
3. Confidence in Business Model
The willingness of Indian institutions to absorb such a large stake signals market confidence in Paytm’s transition from a loss-making startup to a tech-led financial services provider.
Analyst TakeMarket experts believe this move is largely neutral to positive for the stock:
“While a large shareholder exit typically causes short-term volatility, Antfin’s exit was expected. What matters now is Paytm’s path to profitability, growing financial services offerings, and its ability to scale user engagement,” said a senior analyst at a Mumbai-based brokerage.
The Bigger Picture: Exit of Chinese Giants from Indian Startups
This bulk deal is part of a broader trend where Chinese tech investors like Alibaba, Tencent, and Ant Group have been unwinding their stakes in Indian startups due to:
- Geopolitical tensions
- Tightening of FDI norms
- Local investor interest
- India’s growing self-reliance in tech financing
The shift not only changes the funding dynamics in India’s startup ecosystem but also opens up the landscape for strategic global and domestic investors.
Conclusion
Antfin’s ₹4,097 crore stake sale in One97 Communications marks the near-completion of its phased exit from Paytm, and potentially India. While the bulk deal may seem like just another high-value trade on the bourses, it carries significant implications — for the company, for investor sentiment, and for India’s digital economy at large.
As Paytm forges ahead with a clearer cap table and renewed focus, the baton is now in the hands of domestic and global believers in India’s fintech revolution.
