Alibaba and SoftBank-backed financial services platform Paytm on Wednesday announced that post the merger of discovery and deals platforms for local merchants – Nearbuy (formerly GroupOn India) and Little Internet – it has become the majority shareholder of the merged entity. The size of the deal is valued at little over $100 million, with Paytm owning little over 51% stake in the merged entity. The acquisition will help Paytm expand its offline merchant base, as Nearbuy and Little put together has network of 40,000 small and large merchants across food, beauty, travel and other categories. Paytm currently has over 5 million merchants on its network.
“This combination of Nearbuy and Little marks a great opportunity for us to reinforce our commitment to support small and large retailers in the new age of mobile commerce and payments,” said Vijay Shekhar Sharma, founder and CEO of Paytm.
As part of the process of merger, Paytm first acquired 100% equity in Little, and then through share swap with Nearbuy gained majority shareholding in the merged
entity. Besides Paytm, Sequoia India, Nearbuy founders — Ankur Warikoo, Ravi Shankar and Snehesh Mitra have stake in the merged firm.
This is Paytm’s second acquisition in the current fiscal, with the firm buying a majority stake in ticketing platform Insider.in
in August. In May this year, Paytm raised $1.4 billion in fresh funding from Japan’s SoftBank Group Corp. With this, the company’s parent, One97 Communications, was valued at $7 billion.