Paytm joins hands with lottery firm AGTech Media to set up a gaming company

Paytm, the Indian electronic payment and e-commerce company run by One97 Communications has entered into a joint venture with Hong Kong-based lottery firm AGTech Media to set up a gaming company in India.

AGTech Media is a wholly-owned subsidiary of AGTech Holdings, which is owned by Alibaba Group company Ali Fortune Investment Holding Ltd. Alibaba is also an investor in Paytm. AGTech Media is investing $7.2 million and Paytm $8.8 million in the joint venture, giving the Indian entity a 55 percent stake.

AGTech Media and Paytm Group will together invest $16 million (Rs 103 crore) in the venture. The company will have five board of directors, three from Paytm and two from AGTech Media.

The new company will develop various platforms including website and mobile applications. “This will help Paytm drive deeper consumer engagement as customers can now earn exclusive rewards and discounts on the platform,” AGTech said in a filing to the Hong Kong Stock Exchange on Monday.

The joint venture will also be involved in development and operation of various platforms, including website, mobile applications or other distribution channels to distribute and publish other products.