Paytm issued the clarification following a media report claimed that Alibaba-backed Ant is thinking about the divestment of its stake in Paytm largely since of India‘s strained relations with China due to prolonged border tensions.
Yet another most likely variable could be enhanced competitiveness in India’s digital payments ecosystem, stated the report that cited unnamed sources familiar with the issue.
Ant Group explained that the report is primarily based on “phony facts.”
“The information is certainly phony and deceptive. There has been no discussion with any of our important shareholders ever, nor any options, about offering their stake or becoming the managing shareholder,” a Paytm spokesperson mentioned in a assertion.
“Our mission is to empower fifty percent a billion Indians with electronic financial products and services and go after the large prospect presented by the electronic financial revolution in our place.”
Paytm reported that it is “seeing a spectacular improve in revenues and acceleration of our path to breakeven.”
The report comes at a time when India has banned 267 Chinese applications in a span of about five months.
India has also tightened rules for investment from China amid border tensions with the country.
Last month, the Shanghai Stock Trade (SSE) postponed Ant Group’s listing at $37 billion, which would have been the greatest IPO at any time.