SoftBank, Alibaba to invest Dollars 445 mln in Paytm E-Commerce

SoftBank, Alibaba to invest Dollars 445 mln in Paytm E-Commerce

He added that Paytm Mall will use the funds to empower shopkeepers with superior technology, logistics and to strengthen the brand and customer experience.

SoftBank's Vision Fund took roughly a fifth of Flipkart past year for US$2.5 billion.

When contacted, Paytm Mall's Chief Operating Officer Amit Sinha said the latest investment led by SoftBank and Alibaba reaffirms the strength of the company's business model, growth trajectory and execution capability.

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Paytm Mall confirmed the new round of funding in a statement.

This funding round values Paytm Mall at around $1.9 billion, giving it the unicorn status.

The deal, which marks SoftBank's first funding in Paytm Mall, will see the Japanese entity holding over 20 per cent stake after the transaction is completed. In 2017, SoftBank had invested $1.4 billion in Paytm. The startup also boosts good numbers and tractions, with the company claiming that its GMV (gross merchandising value) has touched the run rate of $3 billion.

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After investing in Indian e-commerce majors Flipkart and Snapdeal, Japanese tech. This will be SoftBank's second investment in an online retailer in India.

The company is betting big on its offline-to-online (O2O) strategy, which it thinks will drive growth. It has now partnered with 75,000 stores and aims to triple its offline presence by the end of 2019. Currently, they hold 57 per cent together, and it will go down to 46 per cent while SoftBank Vision Fund will hold 21 per cent.

Paytm Mall's increasing popularity has also given the firm a default third position and consequently making the e-commerce market a three horse race competition. This year alone, the conglomerate committed $4 billion, out of which, more than half was invested in Bengaluru-based e-commerce firm Flipkart. In 2016, the Chinese online retailer had contemplated a standalone entry into India or an acquisition.

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