With Reliance Capital sell to Alibaba, Paytm moves close to Flipkart in value at $5 billion

China's leading e-commerce player Alibaba on Tuesday bought a marginal stake held by Reliance Capital for Rs 275 crore. Business Standard reported that the deal has meant a 27-fold return to Reliance Capital and raised the valuation of the parent company One97 Communications to approximately $5 billion that too at a time when the sector is not at its best health. 

Reliance Capital had acquired less than 1% stake in One97 Communications for $1.51 million in 2009. 

With Tuesday's move, the Paytm group has marked its place to the second position in the e-commerce valuation pecking order, when compared to companies with Indian founders. 
Flipkart's value had risen to more than $15 billion a year ago, has had undergone a ride . The latest hit was when Morgan Stanley pegged Flipkart's valuation at $5.39 billion. Home-grown e-commerce company Snapdeal, last year valued at $6.5 billion but the company is learnt to be in talks to raise capital at a valuation lower than $4 billion. 

Earlier, Reliance Capital had said it would trim its proprietary investment portfolio as part of its plans to monetise non-core assets.