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Paytm Is As Indian As Maruti Says CEO Vijay Shekhar Sharma On Chinese Ownership

Chinese e-commerce giant Alibaba has a 40% stake in the Indian e-wallet company
Vijay Shekhar Sharma, founder and chairman of One97
Bloomberg via Getty Images
Vijay Shekhar Sharma, founder and chairman of One97

MUMBAI -- Facing criticism over significant Chinese ownership, Paytm Founder and Chief Executive Vijay Shekhar Sharma has asserted that the payments and e-commerce platform is "as Indian as Maruti" and prides itself on being a representative of the "India story".

"We are as Indian as Maruti is...we are 'India story' in every sense whatsoever," Sharma told .

The once-government controlled Maruti is now majority owned by Japanese carmaker Suzuki Motor Corp with a 56.21 per cent stake as its sole promoter.

Paytm had hailed the ongoing demonetisation drive with advertisements displaying Prime Minister Narendra Modi's picture, leading many critics to point out that its single largest shareholder is Chinese giant Alibaba, the world's largest e-commerce player.

Sharma said Paytm goes out into the world as an Indian company that is of "pride" to India.

"What matters to us is our customers, what matters to us is the law of land, regulator," he said.

Alibaba Group and its affiliate Ant Financial pumped in USD 680 million into Paytm's parent One97 Communications last year, taking its total shareholding to over 40 percent in the country's largest mobile wallet operator with close to 160 million customers.

The criticism over ownership, circulated widely through instant messaging apps, sought to pick up on the sentiment of banning Chinese products.

Sharma, however, appeared unfazed by the criticism, saying, "Everybody else has a way to say whatever they want to say. We don't come to that level and reply."

A recent report also said Chinese investors are looking to raise their stake to 70 percent in the company, which is at the cusp of launching a payments bank.

Reserve Bank guidelines say foreign shareholding in payments banks would be as per the prevailing FDI policies for private sector banks, which currently stands at 74 percent.

Sharma had yesterday said that Paytm Bank, its payments bank offering scheduled for commercial launch next month, will not engage in a rate war with rivals like Airtel, which is offering 7.25 per cent interest on deposits.

"None of our products are driven by anything that anybody else does. I do not know the interest rates of my rivals. But I don't think our product is built around the interest rate," Sharma said.

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This article exists as part of the online archive for HuffPost India, which closed in 2020. Some features are no longer enabled. If you have questions or concerns about this article, please contact indiasupport@huffpost.com.