Vastavam web: SoftBank Group (9984.T) is investing $400 million (26.05 billion Indian rupees) in India’s Paytm E-Commerce Pvt. Ltd. in a funding round that will value the online retailer at roughly $1.9 billion, a regulatory filing showed on Monday.Alibaba (BABA.N), an existing investor in Paytm E-Commerce, is also putting in $45 million in the round, the filing showed.
“We believe Paytm Mall’s offline-to-online operating model, combined with the strength of the Paytm ecosystem, is uniquely positioned to enable India’s 15 million offline retail shops to participate in India’s e-commerce boom,” SoftBank said in a statement on Monday.In a separate statement, Amit Sinha, chief operating officer of Paytm Mall said the company would deploy the latest investment from SoftBank and Alibaba to beef up its technology and build superior logistics among other things.
Alibaba.Com Singapore E-Commerce Pvt. Ltd, which currently owns 36.3 percent of the Indian e-retailer, will remain the single-largest shareholder of Paytm E-Commerce but with a relatively smaller stake of just over 30 percent after its latest investment is completed in four tranches.Paytm E-Commerce competes with Amazon.com Inc’s (AMZN.O) Indian unit and home-grown Flipkart. A group company of Paytm’s parent One97 Communications Ltd runs India’s biggest digital wallet services and also has a stake in a payments bank.