eBay acquires 5.5% stake in Paytm Mall to expand footprint in India
Category: #retail  By Pankaj Singh  Date: 2019-07-20
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eBay acquires 5.5% stake in Paytm Mall to expand footprint in India

Paytm Mall is the third investment of eBay in India after Flipkart and Snapdeal.

The multinational e-commerce corporation eBay Inc. has reportedly acquired 5.5 percent share in Paytm Mall to get a slice of the Indian e-commerce market.

According to reliable sources, under the deal, global inventory of eBay will be accessible to more than 130 million active users on Paytm app and Paytm Mall ecosystem. None of the companies have disclosed the investment amount yet. But the financing round has been estimated to reach about $150 million, cited sources.

Apparently, eBay’s investment comes at a time when business of Paytm Mall has undertaken considerable restructuring. The company has been moving away from a cash backed and discounting strategy to follow an online-to-offline (O2O) model.

Reportedly, in January, Paytm Mall has closed its national e-commerce shipping business, which included onboarding sellers and shipping products throughout the country. Vijay Shekhar Sharma, Founder, Paytm, reportedly stated that the investment is a clear testament of the company’s turnaround, and the shopkeeper commerce model (O2O) being authenticated by a new set of investors.

Sources stated that catalogue integration of eBay has been projected to complete in the next couple of months. It has reserved a board observer seat in the company.

Sharma added that the deal will also allow shopkeepers on Paytm’s platform to source more than a million unique international products from eBay’s global base. The cross-border business will account for about 10-15 percent of overall sales of Paytm Mall in the next one year, he further stated.

Jooman Park, Senior Vice-President, eBay, APAC, reportedly stated that the new partnership will drive cross-border trade efforts of Paytm in a rapidly growing market, offering Paytm Mall and Paytm consumers access to the company’s selection.

However, eBay will reportedly continue to run its e-commerce portal in India. Paytm Mall is the third investment of eBay in India after Flipkart and Snapdeal. The online marketplace has strived to create a large presence in India on its own and has selected to invest in homegrown e-commerce firms to accelerate adoption.

Source credit: https://economictimes.indiatimes.com/small-biz/startups/newsbuzz/ebay-returns-to-india-with-5-5-paytm-mall-stake/articleshow/70269777.cms



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Pankaj Singh

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Pankaj Singh

Pankaj Singh Develops content for Market Size Forecasters, Algosonline, and a couple of other platforms. A Post Graduate in Management by qualification, he worked as an underwriter in the UK insurance domain before deciding to switch his field of profession. With exp...

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