Industry

Paytm Mall Receives $445 Million From SoftBank, Alibaba

Paytm Mall Receives $445 Million From SoftBank, Alibaba

Alibaba, who already holds a stake in Paytm E-Commerce, is also investing Dollars 45 million in the round, the filing showed.

Paytm Mall plans to use the funding to improve its technology and build up its logistics.

GCL System Integration Technology has announced that GCL Group has signed a memorandum of understanding (MoU) with Softbank Vision Fund (SBVF) to produce solar PV modules in India.

SoftBank has invested $400 million in this round while Alibaba and Alipay have together invested $45 million.

"This latest investment led by SoftBank and Alibaba reaffirms the strength of our business model, growth trajectory, execution capability and the potential of India's massive O2O (online-to-offline) model in the retail space", Amit Sinha, COO, Paytm Mall, told the Economic Times.

Paytm Mall has raised about Rs. 2,900 crores in its latest round of funding led by SoftBank and existing investor Alibaba.

SoftBank, which already owns a stake in Paytm's parent One97 Communications, confirmed investing in Paytm Mall, the brand name under which Paytm E-Commerce operates an online market place. SoftBank is also an investor in Paytm, while online retail rival Flipkart also received funding from the Japanese company a year ago. The Japanese group is also one of the biggest investors in Snapdeal, another Indian e-tailer.

Paytm Mall reportedly has a run rate of $3 billion in GMV and aims to reach a run rate of $10 billion by the end of FY19.

Paytm Mall in India competes with Amazon and homegrown Flipkart, both of which are immensely popular among India's online shoppers.

According to the company, offline stores registered on its platform drive over 60% of sales. Previously, this third position was loosely held by Snapdeal but its downfall past year certainly seems to have paved the way for Paytm Mall's rise. The platform Paytm Mall is inspired by Alibaba's T-mall in China.