Paytm Mall raises Rs. 3,000 crore from SoftBank, Alibaba
According to documents filed with the Ministry of Corporate Affairs, online retail firm Paytm Mall has raised nearly Rs 3,000 crore from Japan's SoftBank and its existing investor Alibaba in new round of funding. With this deal, Paytm Mall has earned the coveted unicorn status with a valuation of close to Rs. 12,300 crore or $1.9 billion. Here's more on this development.
Latest investment is a testament to Paytm Mall's growth potential
"This latest investment led by SoftBank and Alibaba reaffirms the strength of our business model, growth trajectory, execution capability and the potential of India's massive O2O (online-to-offline) model in the retail space," said Amit Sinha, COO, Paytm Mall.
About the funding round
As part of the deal, funding is expected to come in four tranches where SoftBank will invest Rs. 2,600 crore while the remaining amount will be infused by Alibaba. Currently, Alibaba (with Alipay) holds 57% stake in Paytm Mall. However, once this deal culminates, SoftBank Vision Fund will hold 21% and Alibaba (with Alipay) will own around 46% stakes in the online marketplace firm.
SoftBank Group committed to support Paytm
"The SoftBank Group is excited to continue supporting Paytm as it develops into one of the leading internet ecosystems in the country. Our investment in Paytm Mall is part of that ongoing commitment," said a SoftBank official.
