The truth behind paytm success

After 8th November 2016( The Demonetization Date), online payment platforms got a huge popularity and large number of users.

Nowadays, there are many payment apps which are working successfully.

The key player in online payment services is Paytm which is a sister company of One97 Communications Ltd.

Paytm took advantage of demonetization by improving service and doing proper marketing at the right time. It was a turning point for Paytm.

It was also famous because of cashback offers.  But have you ever thought why only Paytm among a lot of payment services was able to do this thing?

Also Read: How Xiaomi Become Number ‘1’ Smartphone Brand in India?

Paytm Success Story:

The Chinese e-commerce giant Alibaba Group wanted to invest in the payment sector in India. It was during 2015, and there were only a few platforms for such kind of online payment service.

Alibaba made a huge investment in Paytm for $680 million(as per economic times). With the help of this investment, Alibaba Group holds more than 40% stack(current stack in more than 45%)  of Paytm.

It was one of the biggest investment of Alibaba in India. For having more than 40% of a stack in Paytm, All the decisions of Paytm is controlled by Alibaba. 

Also Read: Why did Walmart buy Flipkart?

Alibaba has been running its online payment service “Alipay” in China since 2004. Jack Ma ( co-founder of Alibaba group) had decided to invest in the financial sector of India.

Then, they invested in Paytm by taking more than 40% of the stack.

By investing lots of money in advertising after demonetization, Paytm become the market leader in online payment services in India.

Related Services

  • As I discussed above, Alibaba is using Paytm in India as they are using Alipay in China.
  • Tmall And Taobao – The online B2C(Business to consumer) in China as Paytm Mall in India.


Now, there are many online payment platforms in India such as Mobikwik, PhonePe, BHIM App, Jio money, Google Tez, etc. But no one can compete with Paytm.

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By Anuj Vohra

Hi , I am Anuj Vohra. Founder of & Saral Investment.

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