Fri. Mar 29th, 2024
Paytm

Paytm, run by One97 Communications, has agreed to form a joint venture with Hong Kong’s AGTech Media to develop mobile games for Indian consumers. This was revealed by the documents filed by AGTech Holdings in a regulatory filing to the Hong Kong stock exchange on Monday.

As AGTech said in the filing to Hong Kong Stock Exchange, The Hong King-based company will hold a 45 percent stake in the joint venture while Paytm will hold the remaining shares.

AGTech Media is a wholly-owned subsidiary of AGTech Holdings, which is owned by Alibaba Group’s Ali Fortune Investment Holding Ltd and Ant Financial. Alibaba is also an investor in Paytm, holding more than 30 percent stake in the payments company.

As part of the agreement, Paytm will invest around $8.8 million and AGTech will invest $7.2 million in the new venture. The JV’s board will have five members; Paytm will nominate three and AGTech will appoint two.

In a statement, AGTech said:

The joint venture will offer innovative mobile games and user engagement activities to Indian consumers by leveraging the group’s decade-long experience in creating mobile entertainment products and Paytm’s massive distribution network to develop mobile games in India.

International markets represent an untapped and enormous opportunity, and this joint venture is a significant breakthrough which lays the foundation for further international expansion in the future.

The joint venture will be engaged in the development and operation of various platforms, including website, mobile applications or other distribution channel to develop and publish a variety of products.

By Jeet