Indian E-Commerce contenders like SnapDeal, Flipkart etc are lagging and facing difficulties to maintain their market value. On the other hand, Paytm is just gliding over the difficulties. Chinese Internet Giantt, Alibaba Group has announced $200 Million for the Indian E-Commerce startup.
According to a file report from registrar companies, Alibaba has invested $177 Million in Paytm. The rest of $23 Million are led by SAIF Partners, who are early stage investors of Paytm. The funding guides the entry of Alibaba in the Indian market, which will help Paytm to explore the market and provide required backing to gain a dominating market share.
After the funding, Alibaba will now own controlling stake of 60 percent in the mobile shopping and payments app. Paytm runs under the brand of One97, which runs Alibaba E-commerce operations. When the funding round is finished, Alibaba Singapore will have the share of 36.31% and the SAIF Partners will have 23.09% of stakes in the firm. The combination will make the total of 56.49% at Paytm.
One97 has divided Paytm into three different business entities: Paytm E-Commerce, Paytm Payment Bank, and Paytm Mobile Solutions. The platform has 140,000 sellers with over 68 million products in electronics, consumer durables, home furnishings, and fashion. Read more about paytm.