Following Jack Ma’s offline to online retail strategy, they were further in talks with offline stores where customers would just walk-in scan the QR code and buy the item from Paytm’s Mall app
Paytm’s ecommerce subsidiary Paytm Mall has raised $445 million in a round led by Chinese ecommerce behemoth Alibaba and multinational conglomerate Softbank. According to the regulatory filings by Paytm ecommerce, Softbank has invested $400 million while the rest $45 million were put in by Alibaba. This investment round will mark Paytm’s ecommerce at a valuation of $1.9 billion.
Paytm plans to use the freshly secured funds to empower the shopkeepers with better technology, expanding logistics, marketing and improving user experience.
Confirming the investment raised, a Paytm executive said, “This latest investment lead by Softbank and Alibaba reaffirms the strength of our business model, growth trajectory, execution capability and the potential of India’s massive O2O model in the retail space. We are committed to increasing the business growth for the offline merchants, who serve their customers’ daily. The funds will be deployed for empowering the shopkeepers with technology, building superior logistics, strengthening the Paytm Mall brand and bringing an enriching experience to the customers.”
Paytm Mall became an independent entity, from Paytm, in February 2017. Later Alibaba invested $200 million in the company just the next month. Also, last December there were reports stating that Paytm was planning to invest over $2.5 billion in its ecommerce arm. With over 10 crore customers, over 500 categories and 39,000 pincodes, the company seems to expanding its operations in India aggressively.
Based on China’s Tmall model, the company is looking to expand its revenue streams. Paytm was further in talks with grocery company BigBasket and logistics startup Xpressbees for a better integration on their platforms. The company further added that it has kept a $10 billion gross merchandise volume run rate by 2019.
Following Jack Ma’s offline to online retail strategy, they were further in talks with offline stores where customers would just walk-in scan the QR code and buy the item from Paytm’s Mall app. Softbank has been aggressive in India post the Flipkart-Snapdeal merger. They invested over $5 billion in India to acquire significant stake in these internet companies. These investments include over $1 billion in Paytm, $2.5 billion in Flipkart, a quarter million in OYO rooms and $1.1 billion in Indian cab hailing giant Ola technologies.