Paytm De-links Its Business And Starts A New Venture.
Economic Times has reported that Paytm, the Leading Online Recharge and digital wallet company has decided to start a spinoff company that focuses only on E-commerce. This move is separate from the existing recharge business with the e-commerce which they are planning to launch during the Diwali Festive season.
This move might help the investors to have a better clarity and can help to streamline the business in a much better way. This will also enable Paytm to raise funds for the new venture and as per rumours; Chinese Ecommerce Giant ‘Alibaba’ is expected to join hands with them. Paytm is also in talks with Tata Group for this venture.
Alibaba , which is having a sizeable stake in Paytm is also looking for more investment options and is rumoured to be in talks with Snapdeal for stake or for acquisition.
As per the reports filed with the Registrar of Companies, Vijay Shankar Sharma, the founder of Paytm will hold a majority stake in the new entity and will continue to operate under same address as Paytm’s Parent Company One97 in Delhi.
The Ecommerce industry which has witnessed fierce competition with the existing players including Flipkart, Amazon, and Snapdeal will now have to compete against Paytm’s new venture. Paytm has already begun the groundwork for the launch and is working incessantly towards this.