Published: Wed, April 04, 2018
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Paytm E-Commerce gets Dollars 445 mln investment from SoftBank, Alibaba

Paytm E-Commerce gets Dollars 445 mln investment from SoftBank, Alibaba

SoftBank is investing Dollars 400 million (approximately INR 26 billion) in Indian company Paytm E-Commerce, in a funding round that values the online retailer at USD 1.9 billion, Reuters reports, citing a regulatory filing.

According to a stock exchange statement by GCL-Poly Energy Holdings Ltd (HKG:3800) last week, Golden Concord has signed a memorandum of understanding (MoU) with SoftBank Vision Fund LP, acting via its manager SB Investment Advisers (UK) Ltd, which is a subsidiary of SoftBank.

Softbank will infuse $400 million in Paytm Mall, and existing investor Alibaba will bring in the rest.

When contacted, Paytm Mall COO 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.

The fresh funding comes after Japanese Internet giant SoftBank pumped in a whopping $1.8 billion in One97, founded by Vijay Shekhar Sharma, which is the parent of Paytm, for about a 30 per cent stake past year. The first tranche of Rs. 357.5 crores has already made its way to Paytm Mall. With this the company is now valued at $2 billion.

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

The investment will also give SoftBank a deep presence in the Indian e-commerce sector. This will be SoftBank's second investment in an online retailer in India. Previously, this third position was loosely held by Snapdeal but its downfall a year ago certainly seems to have paved the way for Paytm Mall's rise.

Paytm Mall has replaced Snapdeal as the third largest player e-commerce company, behind Flipkart and Amazon India. It focuses on an online-to-offline model where it partners with stores to drive sales.

One97 Communications Ltd, the parent entity that owns brand Paytm, spun off the e-commerce business into a new mobile application and a separate website in February 2017.

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