One97 Communications, the company which owns and operates Paytm, a mobile marketplace and digital wallet, has incorporated a separate entity for its online retail business as its key investor Alibaba Group Holding Ltd firms up plans to enter India either independently or through an acquisition.
One97 has already created a new entity called Paytm E-Commerce Pvt. Ltd, to which it will transfer the online retail business of the payments and e-commerce platform.
Once completed, the restructuring will allow Paytm E-Commerce to independently raise money from investors.
The new entity was incorporated on 16 August and Paytm founder Vijay Shekhar Sharma has also incorporated Paytm Payments Bank Limited as a separate entity , documents filed with the Registrar of Companies show.
The new company shares a common address with One97’s Delhi office. Chinese internet giant Alibaba and its affiliate Ant Financial are the largest stakeholders, at 40 per cent, having invested $680 million in One97.
The new entity was incorporated on 16 August and currently lists One97 founder Vijay Shekhar Sharma as the majority shareholder in the firm
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