EBay mentioned as we speak it’s shopping for a 5.5% stake in e-commerce market Paytm Mall as the worldwide agency makes one other push to achieve footprint in India’s fast-growing e-commerce market.
The 2 corporations didn’t disclose monetary phrases of the deal, however a supply accustomed to the matter informed TechCrunch that EBay has invested between $150 million to $200 million in Paytm Mall at a valuation of $three billion, up from underneath $2 billion final 12 months. Paytm Mall had raised about $650 million previous to as we speak’s announcement, the supply mentioned.
The settlement will see greater than one million merchandise of EBay be made out there for buy to customers on Paytm Mall, Vijay Shekhar Sharma, founder and CEO of Paytm mentioned in an announcement. “We’ll collectively choose the stock we wish to deliver right here. It is going to be executed in a month’s time,” he added. EBay will proceed to function its e-commerce web site in India, the corporate mentioned.
The deal may strengthen Paytm Mall’s place in India, the place it competes with Walmart -owned Flipkart, and Amazon India. On-line retail gross sales in India are anticipated to develop to about $72 billion in three years, in line with analysis agency eMarketer.
Paytm Mall, which is backed by SoftBank, Alibaba, Ant Monetary, and SAIF Companions, reported GMV gross sales of $188 million in 2018. In final one 12 months, gross sales on the e-commerce arm of One97 Communications, which additionally runs Paytm pockets, has misplaced momentum after it lower down the lofty affords it was bandying out to prospects, in line with an Financial Occasions report.
Like Amazon and Flipkart, Paytm Mall operates on an inventory-led mannequin in India, however in current months it has shifted its focus to offline-to-online and online-to-offline fashions, whereby orders positioned by prospects are serviced from native model shops. A second supply informed TechCrunch that Paytm Mall intends to aggressively develop its non-inventory based mostly fashions. Paytm Mall claims to have over 100,000 vendor companions on its platform.
That is EBay’s third funding in India. The corporate made its first funding within the nation in Snapdeal in 2013, after which on Flipkart. After the Indian agency was acquired by Walmart for $16 billion, EBay offered its stake for $1.1 billion and relaunched its e-commerce web site with cross-border commerce as its new focus.
“We’re deeply dedicated to India and imagine there’s big progress potential and vital alternative on this dynamic market,” mentioned Jooman Park, Senior Vice President of EBay’s APAC enterprise. “This new relationship will speed up our cross-border commerce efforts in a quickly rising market, offering tons of of hundreds of thousands of Paytm and Paytm Mall prospects with entry to EBay’s unparalleled collection of items.”