The deal, which marks SoftBank's first funding in Paytm Mall, will see the Japanese entity holding over 20 per cent stake after the transaction is completed. Ltd, between $1.6 billion and $2 billion, two people close to the development said, on the condition of anonymity.
SoftBank, which is among major investors in India's fast-growing e-commerce sector and already owns a stake in Paytm's parent, confirmed investing in Paytm Mall, the brand name under which Paytm E-Commerce operates an online marketplace.
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. Unlike both these e-commerce giants, Paytm Mall offers online shopping services only through its dedicated mobile app. This will be SoftBank's second investment in an online retailer in India.
Any social media accounts to declare? U.S. wants to travelers to tell
New rules will also require data of previously used telephone numbers and e-mail addresses to be provided, according to reports. Along with the proposal's publishing, the department will begin a 60-day period for the public to comment on the plan.
It further quoted Amit Sinha, Chief Operating Officer of Paytm Mall, as saying that the company would deploy the latest investment from SoftBank and Alibaba to beef up its technology and build superior logistics, among other things. "We are committed to increasing the business growth for the offline merchants, who serve their customers daily", he said.
According to the company, offline stores registered on its platform drive over 60% of sales. It has now partnered with over 75,000 stores and aims to triple its offline presence by the end of 2019. Previously, this third position was loosely held by Snapdeal but its downfall previous year certainly seems to have paved the way for Paytm Mall's rise.
Owing to its different business model, Paytm Mall has certainly earned a niche for itself in the highly competitive e-commerce market.
In June previous year, Paytm E-Commerce had raised $200 million from Alibaba and venture capital firm SAIF Partners.