Gurgaon based e-commerce retailer Paytm Mall has raised $225 Million (nearly Rs 1,500 crore) from Softbank and Alibaba. This funding is a third tranche of the $445 Mn that Alibaba and SoftBank had committed to Paytm Mall in April this year.
As per the regulatory filings, SoftBank has infused $200 Mn while rest of the $25 Mn has been pumped in by Alibaba. Following the latest funding round, the Japanese investment giant will reportedly pick up 21% and Alibaba will acquire nearly 46% stake in Paytm Mall. Reports also claimed that SoftBank’s Kabir Misra will join company’s board of directors team after all the funding formalities are completed.
Last month, SoftBank diluted its stake in Flipkart, which invariably paved the way for the Japanese investment giant to make further investment in Paytmall. A conditional clause in the recent Flipkart-Walmart deal stated that the Japanese investment giant can invest only to a specific limit in Paytm Mall.
Paytm Mall all set to take on Flipkart & Amazon
Loaded with fresh ammunition post-SoftBank & Alibaba funding, Paytm Mall will most certainly make aggressive strategies to take on Flipkart & Amazon. The online retailer, which is an e-commerce arm of digital wallet company Paytm, has already upped the antic in its quest to wrest of the market share from existing market leaders. It is currently busy empowering shopkeepers with cutting-edge technologies, plugging existing holes in logistics and further enhancing the Paytm Mall brand.
Analysts claim that Snapdeal’s downfall has immensely benefitted Paytm Mall as it helped the latter in making a default third player in India’s burgeoning e-commerce market. However, the analysts argue that much of Paytm’s chances to succeed will depend on innovation and its consistency in offering customer satisfaction. The company currently claims a run rate of nearly $3 billion in gross merchandising value.