Shanghai/New Delhi, Sept. 29 (Agencies): Chinese e-commerce giant Alibaba Group Holding Ltd and its finance arm Ant Financial Services Group are injecting fresh capital into Paytm, India's largest mobile payment and commerce platform, in what the companies say is a "strategic" investment.

Alibaba and Paytm disclosed the deal in a joint statement today without saying how much it was worth, nor how big a stake in Paytm the Chinese firms would acquire.

Ant Financial had already acquired 25 per cent of Paytm parent One97 Communications in February in a transaction that a person with knowledge of the matter said was worth more than $500 million.

In June, Alibaba Group was in advanced talks to buy a stake in Paytm, according to two people familiar with the matter.

At the time, one source with direct knowledge said the deal would see Alibaba directly invest around $600 million. That would see it and affiliated Ant Financial's total holding amount to about 40 per cent of the Indian payments firm, and value Paytm at roughly $4 billion.

In their statement on Tuesday, the companies said the new funds would help Paytm expand its mobile commerce and payment system in India, as well as invest in marketing, technology and talent.

Paytm has more than 100 million "Paytm Wallet" users who carry out over 75 million transactions a month, according to the statement. The company has been aggressively investing in expanding its wallet, e-commerce and payment operations.

"Investing in Paytm will enhance the ability of Alibaba and Ant Financial to tap opportunities in India's fast-growing mobile e-commerce marketplace and digital finance industry," the statement said.

"India is an important emerging market with strong e-commerce potential, and we look forward to partner with Paytm to deliver innovative products and services to consumers," Alibaba Group CEO Daniel Zhang said.

Alibaba, which is also an investor in e-commerce firm Snapdeal, has been looking at increasing investments in Indian companies.