One97 Communications-owned Paytm has recently formed a joint venture with Hong Kong-based lottery firm AGTech Media to launch a mobile gaming company in India, AGTech Holdings said in a regulatory filing on Monday. Alibaba Group holds a controlling stake in AGTech Holdings.
In the joint venture, AGTech Media will hold 45 per cent and Paytm will be the majority holder, owning 55 per cent of the stake.
They will together pump in $16 million (Rs 103 crore) in the new venture. The board will comprise of five directors, three from Paytm and two from AGTech Media.
“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 Group’s massive distribution network to develop mobile games in India,” said AGTech.
With the newly launched venture, AGTech has begun its strategic global expansion. The group aims to tap the available opportunity in the International markets and it believes that this venture is a significant break which lays the foundation for upcoming international expansion in the future.
AGTech Holdings owns AGTech Media, which serves integrated lottery technology and services in China, and is a platform of Alibaba Group and Ant Financial Group for lottery.
On the other hand, for Paytm, the joint venture offers an opportunity to drive deeper consumer engagement as customers can now earn exclusive rewards and discounts on the platform.
Besides, the engagement will also help Paytm to engage 225 million registered users. It will provide mobile games and user engagement projects to Indian market by leveraging the AGTech Media Group’s experience in creating mobile entertainment applications and Paytm’s distribution nexus.