India’s biggest bet in the e-commerce market, Jack Ma-led Alibaba andAnt Financials, have exited Paytm E-commerce Pvt Ltd, the parent company of Paytm Mall.

Paytm has repurchased the entire stake of Alibaba (28.34 per cent) and Antfin (Netherlands) Holding (14.98 per cent), a total of 43.32 per cent, for Rs 42 crore, according to the company. In the year 2020, the valuation of Vijay Shekar Sharma led the company’s last fundraising.

In China, Alibaba’s inspired T-mall raised $200 million in its first funding from Alibaba at more than $ 1 billion in 2017. Overall the company raised $ 800 million and above from Alibaba, Ant Financial, SoftBank, Elevation Capital (earlier SAIF Partners) and eBay.

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“Despite investing significant amounts of capital in growing its business and expanding market share, the company suffered operational losses. Given that the online business space is evolving rapidly with the onset of unique business models, changing technologies and new regulations, it is expected that additional capital and efforts will be required to be committed. The sector continues to be highly competitive and is marketed by the presence of several large competitors. Finally, the ongoing pandemic has thrown up unique challenges for different businesses. The company has also had to deal with declining market economics and demanding circumstances that impose continuous pressure on financial metrics,” the company said.

“Against this backdrop, the specified shareholders (Alibaba and Ant Financial) have expressed their desire to exit their investments in the company,” it said.

“The company has resolved to pursue a capital reduction path, extinguish equity shares, and pay surplus cash to the specified shareholders. Upon completion of the capital reduction, the company will have the right balance of the capital and shareholders, to build a path of revival and growth on a new trajectory,” it said.