Japan’s SoftBank, led by Masayoshi Son is likely to back Paytm, in what apperas to be one of the biggest deals in the digital ecommerce space. Softbank has already invested $2 Bn in its major stake holding companies like Snapdeal, Ola, Housing, Freecharge, Grofers, and OYO.
As reported by ET, Softbank will be investing $1.9 Bn in Paytm, at a valuation of $9 Bn. Earlier this month, Inc42 also reported about Paytm’s plans to raise $1.5 Bn in an all cash deal. In August 2016, Paytm raised its last funding round of $60 Mn (a speculated amount) which valued the company at somewhere around $4.8 Bn. In March 2017, Paytm’s ecommerce marketplace Paytm E-Commerce Pvt. Ltd also raised $200 Mn from Alibaba and SAIF Partners.
An email send to Paytm did not elicit any response at the time of publication.
2016 was a year of accomplishments for Paytm on all fronts and this continued with the new financial year FY17-18.
In August 2016, after securing a $60 Mn funding round, One97 Communications, which runs Paytm, created a separate entity called Paytm E-Commerce Pvt. Ltd and transferred its online retail business onto it. Paytm’s founder Vijay Shekhar Sharma had also announced plans to invest $120 Mn-$149 Mn in developing the new entity.
Paytm also made a major move towards capturing more Indian ecommerce customers by announcing the launch of Paytm Mall – closely modelled after Tmall, the Alibaba-owned marketplace B2C retail ecommerce play in China.