 "Alibaba takes lead in Paytm's e-commerce biz with fresh $177-mn funding")
Jack Ma’s Alibaba continued its quiet global expansion on Friday, leading a $200 million funding round in Paytm to give it control over the newly launched Paytm Mall site and app.
The move is confirmed by a regulatory filing in India, as reported by Business Standard.
Paytm, launched in 2010, has not issued a statement regarding the funding, but according to documents submitted to the registrar of companies accessed by Tech in Asia, Alibaba will put $177 million into Paytm. The remaining $23 million will come from SAIF Partners.
It comes nearly a year after Alibaba took a controlling stake in Lazada, an online marketplace for Southeast Asia.
Fast-growing ecommerce market
The funding is for Paytm’s ecommerce business, which the startup decided to split from its payments unit last year. It puts Alibaba closer to a formal entry into India’s burgeoning ecommerce market to combat market leaders Flipkart and Amazon.
The new share issuance will be completed in the next six months. The ecommerce giant already holds about 40 percent of Paytm alongside Jack Ma’s Ant Financial, China’s top mobile payments company, after two earlier investments.
Alibaba’s investment in Paytm can pose trouble for the existing players, especially homegrown duo Flipkart and Snapdeal. Both have been struggling to raise funds, with Flipkart’s valuation cut several times, and Snapdeal recently announced a 100 percent pay cut for its founders.
With Alibaba committing to India with more funds, it could be a straight war between Amazon and the Chinese company.
Paytm has started to push its ecommerce business. This week, the startup launched Paytm Mall, which is similar to Alibaba’s Tmall in China. The platform has 140,000 sellers with over 68 million products in electronics, consumer durables, home furnishings, and fashion.
One subscription. Two world-class reads.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%