Paytm joins hands with AGTech Media
Paytm to set up a gaming company!
Hong Kong stock exchange listed AGTech Holdings has joined hands with India’s Paytm Group to develop mobile games and other entertainment products, according to a press statement announced by AGTech.
While Paytm will hold 55 per cent shares in the joint venture, AGTech Holdings will hold a share of 45 per cent. AGTech is investing $7.2 million and Paytm $8.8 million. Together they would invest $16 million (Rs 103 crore) in the venture. This proves a higher potential for both the parties.
There will be five directors on the board, two from AGTech Media and three from Paytm. This joint initiative will help Paytm engage further in its network of 225 million registered users. Website and mobile applications would also get developed by the company.
Paytm had seen its peak in business when the demonetization wave struck the nation. During the Aadhar national-identity system, Paytm made headlines too. The terms of the partnership talk of a three-year lock-up and non-compete clause. This explains why AGTech was Alibaba’s choice and not Alibaba or Ant Financial.
“This will help Paytm drive deeper consumer engagement as customers could now earn exclusive rewards and discounts on the platform,” said AGTech. The group believes that international markets represent an untapped and enormous opportunity. This joint venture is a significant breakthrough which lays the foundation for further international expansion in the future.
As the leading mobile payment platform in India, Paytm is the ideal local partner for this key collaboration, according to the statement.
As Paytm finds a foreign partner, do you think the other local startups would also woo good suitors? Do share your views.
Excerpts from Bloomberg and The Economic Times.