Paytm Is Receiving Around $177 Million
The Chinese E-commerce giant Alibaba is all set to invest a large investment of $177 million in Paytm’s online marketplace. This is next big investment it has made after it entered the Indian market with the help of Paytm. This decision of funding by Alibaba was been confirmed in a regulatory filing at the Registrar of companies in India.
After such a huge investment from Alibaba in Paytm, Alibaba will be having good Shareholding in the company along with SAIF partners. However, Paytm is not revealing anything about the investment. It will still be having major stakes in the company.
Alibaba is been strategically shelling out large investments in Paytm in order to make its mark in Indian online market. There is news about many investments gone in to change the entire course of the online E-commerce.
With the investment of $200 million in Paytm will give a grand entry to Alibaba in the online E-commerce segment. Alibaba would be directly competing with the other renowned E-commerce websites such as Flipkart, Amazon and Snapdeal. After the investment, it is likely to have a capital worth $573 million.
With such a tremendous growth of the E-commerce unit, it will make the other players like Amazon and Flipkart run for their money. Just a few days ago, Paytm had its new app- Paytm Mall for the online marketplace. There are more than 17 centres in parts of India and this platform provides sellers with a great reach with more than forty partners in courier segment. This new app will have sellers adding their products globally especially from the regions of Southeast Asia.
The company got the funds at the right time when the rivals Flipkart and Snapdeal are looking to expand their businesses by cutting their costs and aiming for higher profits. Similarly, Amazon is concentrating on initiating marketing promotions such as Prime.
There are huge numbers of vacancies in this business unit to diversify its operations. They have 140,000 sellers with more than 68 million products across all the categories of fashion, home decors, furnishings, consumer durables and electronics. One97 Communications now holds three units Paytm Payments Bank, Paytm E-commerce and Paytm Mobile Solutions.
It was in the month of January 2017 when it got an official permission from the RBI to have its own payments bank. This will set a benchmark for the company and sooner it will be a one-stop destination for all your financial, daily needs and fashion needs.