SoftBank invests $400 million in Paytm Mall
03 April 2018
Japanese major SoftBank Group has invested $400 million in Paytm E-commerce, while Alibaba, the Chinese giant, has injected another $45 million in the online retailer.
“We believe Paytm Mall’s offline-to-online operating model, combined with the strength of the Paytm ecosystem, is uniquely positioned to enable India’s 15 million offline retail shops to participate in India’s e-commerce boom,” said a statement by SoftBank, which will now have a 21.1 per cent stake in Paytm E-commerce.
According to Amit Sinha, COO, Paytm Mall, the funds would be used to build its technology and superior services. “We are committed to increasing business growth for the offline merchants, who serve their customers daily,” he said. “The funds will be deployed for empowering shopkeepers with superior technology and building logistics.”
The deal values Paytm Mall at nearly $2 billion. The company, which emerged as an independent entity from Paytm last year, has 100 million customers and is expanding operations aggressively across India.
SoftBank has so far invested over $5 billion in India in firms including Flipkart, OYO rooms and Ola Technologies.