07/03/2017 3:13 PM IST | Updated 07/03/2017 3:56 PM IST

Anil Ambani's Reliance Capital Makes ₹275 Crores By Selling 1% Stake In Paytm

Chinese e-commerce giant Alibaba has picked up the stake.

Shailesh Andrade / Reuters

Reliance Capital has sold its 1 per cent stake in online digital payments provider Paytm to its Chinese backer Alibaba Group and affiliates for about ₹275 crores, making a whopping 28 times its initial investment, according to media reports.

Reliance Capital, which is the financial services subsidiary of Reliance Group, had invested ₹10 crore in Paytm in 2010 via its parent One97 Communications.

In December, Paytm founder Vijay Shekhar Sharma sold one per cent of his shares in One97 Communications to its shareholders for about ₹325 crore, in an effort to raise funds for the company's proposed payments banks operations.

Alibaba and its payments affiliate company Ant Financial are leading a $200 million investment in Paytm's e-commerce unit. Paytm is also in the process of splitting its operations into a separate e-commerce business and a payments banks business, according to media reports.