Paytm Mall plans to raise Rs 4,000 cr to expand reach in Indian e-commerce

After the successful implementation of its festive season sales, Paytm Mall is reported to be in talks with investors from Asia and the United States for raising Rs 3,000-4,000 crore of funds by the end of 2017.

Paytm Mall, which launched its first ever festive season sale — Mera Cashback Sale — from September 20 to 23, said it witnessed 12 times growth in smartphone sales, eight times in laptops and cameras, 10 times in home appliances, 10 times in apparel, footwear, and fashion accessories, and seven times in fast moving consumer goods.

The company had earmarked over Rs 700 crore to be spent on cash backs and offers during the festive season. 

China’s Alibaba, which owns a majority stake in Paytm, has been aggressively striving to secure the third place in the Indian e-commerce sector, which is dominated by Flipkart and Amazon.

Earlier, in the interview with Business Standard, Paytm Mall Chief Operating Officer Amit Sinha said by that by next year, the company will be the top player the online retail sector. To achieve this, Sinha says the company is ramping up logistics and also bringing in global sellers. 

Bolstering its online grocery play, Paytm Mall, as reported earlier, was in talks to invest $200 million in BigBasket and the deal is in final stage now. Prior to this, Paytm raised $200 million from Alibaba Group and venture fund SAIF Partners. 

After Narendra Modi's demonetisation drive, Paytm played an important role in democratising access to digital payments for hundreds of millions of Indians. This has led to over 10 million customers signing up for a Paytm Payments Bank account in the beta launch.