Ecommerce firm Paytm Mall is the latest India based startup company to reach unicorn status after raising $ 445 million from SoftBank and Alibaba. In this latest funding round, Paytm Ecommerce raised $ 400 million from SoftBank while Alibaba invested $ 45 million in the firm.
According to documents filed with the Ministry of Corporate Affairs, post this funding round, Paytm Mall will be valued close to Rs. 12,300 crores or $ 1.9 billion. The Economic Times reported, the company is also in advanced talks to further raise an additional Rs. 1000 crores.
The Chief Operating Officer of Paytm Mall, Amit Sinha confirmed the latest development saying, “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 model in the retail space.” The fresh funds, according to Sinha, will be used for empowering shopkeepers with superior technology, building superior logistics, strengthening the Paytm Mall brand and bringing an enriching experience to the customers.
Until now, Alibaba along with Alipay held close to 57% stock in Paytm Mall. However, post this investment round, SoftBank Vision Fund would hold 21% and Alibaba along with Alipay will hold around 46% stake in the ecommerce company.
Last year, the Japan based venture firm SoftBank also led a funding round, investing around $ 1.4 billion in the parent company Paytm. Speaking about this investment round, a SoftBank spokesperson said “The SoftBank Group is excited to continue supporting Paytm as it develops into one of the leading internet ecosystems in the country. Our investment in Paytm Mall is part of that ongoing commitment. We believe Paytm Mall’s offline to online operating model, combined with the strength of the Paytm ecosystem, is uniquely positioned to enable India’s 15 million offline retail shops to participate in India’s ecommerce boom.”
Launched as an independent entity in 2017, Paytm Mall currently claims to have over 10 crore customers, over 500 categories and has reached 39,000 pin codes across India. The company also replaced Snapdeal to become the third largest player in the Indian ecommerce ecosystem after Flipkart and Amazon India.