Alibaba and Ant Financial-owned developer AGTech has partnered with Indian e-commerce firm Paytm to develop mobile games and other products.
As reported by Bloomberg Gadfly, AGTech is investing $7.2 million in the partnership, while Paytm is investing $8.8 million for a total of $16 million. This gives Paytm a 55% stake in the partnership.
AGTech is a Hong Kong-based developer which currently focuses largely on gambling machines. It hasn't posted an operating profit for 13 years.
The deal could prove beneficial for both parties, giving AGTech a chance to turn its business around, while Paytm opens up its services to more potential users. Only 23% of people in India made a purchase on their mobile phone last year, far behind many other countries in Asia.
It also leaves Alibaba and Ant Financial free to invest in their own mobile gaming enterprises in India directly. AGTech meanwhile is be caught up in a three-year non-compete agreement preventing it from developing games outside of the partnership.
Alibaba opened its own games distribution service called Alibaba Games in March 2017. Five companies from around the world invested a total of $144.7 million in the new venture.