Reliance Capital has sold its 1% stake in Paytm to Chinese e-commerce giant Alibaba and Ant Finacial Services for Rs 275 crore, reports the Economic Times. Earlier in the day, the Press Trust of India had reported the same and that Reliance Capital had invested Rs 10 crore.

The Economic Times added that Reliance Capital had invested in One97 Communications, the parent company of Paytm, back in 2010 when it had planned for an IPO. Back in 2010, Peeyush Aggarwal, who had 40% stake in One97 Communications, sold 348616 shares to Reliance Capital. One97 Communications is valued at $4.8 billion currently.

A spokesperson for Paytm declined to comment on the deal.

Alibaba and Ant Financial, who together own a 40% stake in One 97 Communication. Note that the Alibaba Group led a $200 million round of funding in Paytm’s recently fenced-off e-commerce section. One97 Communications demerged its e-commerce business from its wallet business. The wallet business was moved to the payments bank company in December.

Recently, Paytm said that it will be investing Rs 600 crore this year to acquire 10 million offline merchants in over 650 districts. The company is investing in scaling up manpower, technology, and merchant education so they can transact digitally for the first time.

Paytm will be using its QR code-based payment solution to bring these merchants on digital payment platforms. The announcement comes shortly after card networks Visa, MasterCard, RuPay and American Express which  launched the BharatQR which will offer an inter-operable QR code system. Wallets and the UPI are not a part of the payment system yet.

Meanwhile, founder Vijay Shekhar Sharma sold 1% of his shareholding in the parent company One97 Communications in December for Rs 325 crore to raise money for the payments bank entity.