Digital payment startup Paytm will enter into gaming business through a joint venture with Hong Kong based firm AGTECH Media.
India’s largest digital payment startup Paytm is all set to enter into gaming business through a joint venture (JV) firm. The company has agreed to form a JV along with Hong Kong based AGTECH Media to setup a new gaming company. This was revealed by AGTECH Media’s regulatory filing in the Hong Kong stock exchange.
According to the regulatory filing, AGTECH Media will hold 45% stake in the JV while the rest will be owned by Paytm. The filing further revealed that Paytm will invest $8.8 million and AGTech will put nearly $7.2 million in the new JV firm.
AGTECH Media is owned by Chinese e commerce giant Alibaba’s subsidiary companies Ali Fortune Investment and Ant Financials. Apparently, Alibaba is also the largest investor in Paytm.
Through this JV, Paytm reportedly wants to leverage AGTECH Media’s rich experience in developing mobile entertainment products. This will help the Noida based startup to keep its roughly $225 million registered users engaged with its app. However, the company has still not confirmed whether it really plans to integrate games or other entertainment features into its payment app. But several media reports claim that the new JV firm will certainly engage in making websites and mobile apps.
This new venture marks yet another attempt by Paytm to venture beyond its traditional mobile wallet business. The company already started the operation of its much awaited payment bank in May, after receiving the final license from RBI. Lately, the startup has also been in news for Paytm Mall’s – its e commerce arm – interest in acquiring the online grocery major BigBasket.