Online retailer eBay plans to invest around $170 million in Paytm Mall
Category: #retail  By Saif Ali Bepari  Date: 2019-04-24
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Online retailer eBay plans to invest around $170 million in Paytm Mall

The American e-commerce giant eBay is reportedly in talks to make a strategic investment in Paytm Mall, a leading Indian online retail platform. The company has initiated talks for investing around $160 million to $170 million in the retail giant.

Reportedly, eBay, which currently holds as much as 5 percent stake in Snapdeal, had sold its 6.55 percent stake in Flipkart last year when the start-up was taken over by retail behemoth Walmart. Sources further speculate that the proposed investment in Paytm Mall is likely to be made out of these sales proceeds worth about $1.1 billion.

According to reliable sources, last year in December, Paytm founder Vijay Shekhar Sharma had sought approval from the company board for phasing in a new strategic investor, given that the company did not anticipate any fresh capital influx from the existing investors - SoftBank and Alibaba. eBay’s latest investment will turn out to be its third bet in India after Snapdeal and Flipkart. The US-based company further looks to operate its independent online portal in the country. 

If reports are to be believed, Paytm’s latest move of inducting a new investor is expected to help the company avoid over-dependence on SoftBank and Alibaba for additional funds. eBay, in the form of a new strategic investor as per sources, will also help Paytm in consolidating its position in the highly competitive e-commerce market, cite sources.

On materialization of the deal, sources speculate further competition among all the existing contenders having direct involvement or support of US-based giants – Amazon, Walmart, and eBay.

For the record, Paytm had obtained approximately Rs. 1,500 crore in June last year, from Japan-based SoftBank and its existing investor Alibaba, which was a part of the Rs. 3,000-crore funding commitment initially declared in April. The investment subsequently valued the company at around $2 billion.

Source Credit: https://www.thenewsminute.com/article/ebay-talks-invest-160-170-million-paytm-mall-100476

https://www.dealstreetasia.com/stories/ebay-paytm-mall-131860/



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Saif Ali Bepari

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Saif Ali Bepari

Saif Ali Bepari currently works a content writer for Market Size Forecasters, Algosonline, and numerous other platforms. A Computer Science graduate who has a zest for writing over coding, he has previously dabbled into technical and creative writing. He now pens down...

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