Patym Mall raises Rs 3000 crores from SoftBank and other investors
03rd, April 2018 - Startup funding
Online marketplace Paytm Mall has raised close to Rs 3,000 crore in a financing round led by Japan’s SoftBank along with participation from Chinese online commerce giant Alibaba, according to documents filed with the Ministry of Corporate Affairs (MCA). As per calculations, this deal values Paytm Mall close to Rs 12,300 crore or $1.9 billion, giving it the coveted unicorn status.
With this Softbank has invested in all three major Ecommerce payers in India i.e. Flipkart, Snapdeal, and PaytmMall
The funding is expected to come in four tranches, as per the MCA filings. Currently, Alibaba along with Alipay holds 57% stake in Paytm Mall. However, after the fourth tranche of financing concludes, SoftBank Vision Fund will hold 21% and Alibaba (with Alipay) will hold around 46% stake in the ecommerce company.
As per the source The funds will be deployed to empower the shopkeepers with technology, building superior logistics, strengthening the Paytm Mall brand and bringing an enriching experience to the customers
Paytm Mall has been making inroads into the Indian ecommerce market, replacing Snapdeal as the third largest player after Flipkart and Amazon India. The company claims to have exited FY18 at a gross merchandise volume (GMV) run rate of $3 billion and is targeting an ambitious $10 billion run rate by end of this fiscal. According to the MCA filings, Paytm Mall is expected to close FY18 with a loss of around Rs 1,013 crore, which shot up from just Rs 13.6 crore in FY17.
Paytm Mall focuses primarily on its online-tooffline model which drives almost 60% of its overall sales through its partnership with 75,000 stores. The company plans to triple its offline presence by end of 2019.
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