Paytm and Flipkart have been one of the most successful startups in India. Paytm, which started as e-payments Company, slowly ventured into e-commerce too. At CoffeeChatsAsia we have already published how Paytm impacted Bookmyshow’s revenues in the last fiscal year in the online ticketing space.
Similarly, with its Paytm Mall, the e-payments and e-commerce giant is starting to impact Flipkart’s business, slowly and steadily. At the same time, Softbank (and Tiger Global) is spearheading a Flipkart sale to Walmart Inc. In an attempt to increase its reach, Paytm Mall successfully raised $445 million from Softbank and Alibaba.
The investment comes at a time when Softbank is holding stock of 20.5% in Flipkart. According to a media statement Paytm Mall CEO, Amit Sinha mentioned ‘the funds will be deployed to empower the shopkeepers with technology, building superior logistics, strengthening the Paytm Mall brand and bringing the enriching experience to the customers’
Out of the $445 million, Softbank’s investment accounted for $400 million, while the rest, $45 million has been invested by Alibaba. Paytm Mall is aiming to clock a GMV (Gross Merchandise Value) of $10 billion, a 333% increase from its current GMV of $3 billion. Paytm works on ‘O2O’ (online-to-offline) business model serving 700 towns and cities in India.
It’s worth noting that Alibaba Group has recently announced that it is increasing its investment in Southeast Asia’s leading e-commerce giant Lazada by $2 billion and appoints its most senior executive Lucy Peng as Lazada Group CEO, replacing the Founder / CEO Maximillian Bittner.
Keep watching this space for more updates and enriching insights on startup community in Asia Pacific.