Using Alibaba-backed Paytm not good for India: Swadeshi Jagran Manch

paytm payments bank

Protesting against digital wallet Paytm, RSS-affiliated Swadeshi Jagran Manch has appealed to the government to disallow investment in companies, which are getting funding from China.

“We have given a call to people and asked them to stop using Paytm. We also asked the government to disallow investments in companies like Paytm from China because it is prone to security hazards and economic problems, which is not going to be in the best interest of our country,” SJM Co-Convenor Ashwani Mahajan was quoted as saying to PTI.

Too much of foreign investment coming from China will create situation alike Srilanka, where the country is forced to give away its airport in exchange for debts. Paytm is not a domestic initiative because more than a majority portion is being owned by
Alibaba and other Chinese firms, he added.

Over past one month, India has been facing standoff with China in Dokalam, which remains unresolved.

Paytm is yet to issue any official statement on this. Entrackr queries to the digital wallet, still remains unanswered.

In March 2017, Paytm E-commerce raised $200 million (Rs 1,334 crore) from Alibaba and existing investor SAIF Partners. The investment increased the stake of Alibaba and its affiliate Ant Financial (the parent company of Alipay) in Paytm E-Commerce from 40% to 62%.

In May this year, Japanese Internet and telecom major Softbank Group Corp invested $1.4 billion in One97 Communications, which is Paytm’s parent company.

Following the move, Paytm launched many features to keep its base of 225 million users engaged. The company has in last few years, ventured beyond its traditional mobile wallet offering into the payments banking and e-commerce sectors. It also plans to launch chat services for countrymen.

Founded in 2010 by Vijay Shekhar Sharma, the company employs over 13,000 employees as of January 2017 and has 3 million offline merchants across India. During demonetisation drive, Paytm had reported significant growth in its wallet business. It also had displayed PM Narendra Modi picture during the drive.

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