Alibaba is all set to make its debut in India's rapidly expanding mCommerce space. The Chinese eCommerce giant will acquire 25 percent in One97 Communications which is the parent of mobile commerce firm Paytm.

In a statement, Ant official services, a part of Alibaba Group said that it has entered in an agreement to buy "a 25% stake in One97 to support the growth of mobile payment and commerce platform in India".

Alibaba is the largest e-commerce firm in the world. Last September it raised 25 billion dollars through IPO in United States. Ant financial will also be giving Paytm strategic and technical support for its business.

Ant Financial VP Cyril Han said "With over 1 billion people, India's payments market has vast untapped potential." In order to offer customers in India comprehensive [products and services and to tap the potential of Indian mobile payment market, Ant Financial and Paytm will build on synergies in the mobile wallet front.

Vijay Shekhar Sharma, One97 Communications Found and CEO said "We are pleased to partner with Ant Financial in India. I believe that together, we will change the landscape of mobile payments and commerce in our country."

Simpson Thacher & Bartlett, Trilegal and Amarchand & Mangaldas and Suresh A Shroff & Co acted as the legal advisors on the deal while the financial advisors were Citi and Goldman Sachs.

Last November, while on a visit to India Jack MA, the founder of Alibaba said that he is interested in investing more in India and help technology entrepreneurs.

The gross merchandise value of Alibaba stood at 127 billion dollars for the quarter ended December 31 last year.