After withdrawing its case against Unicommerce, an ecommerce management platform owned by Snapdeal, two weeks ago, Paytm ECommerce Pvt. Ltd, operator of online marketplace Paytm Mall will reopen the case accusing Unicommerce of data misuse, reports VCCircle. Paytm had withrawn the case as it could not provide any proof in support of the allegations, as per the report.
Note that Paytm had demerged its e-commerce business into a separate entity called Paytm Mall, which is similar to Alibaba’s TMall, in February this year, and appointed Amit Sinha as its chief operating officer (COO) to lead the Paytm Mall business. Paytm Mall raised $200 million from Alibaba Group Holding and SAIF Partners, in March this year, of which Alibaba invested $177 million for a 36.31% stake and SAIF Partners invested $23 million for a 4.66% stake. Before the business demerger, Paytm had filed a lawsuit against Unicommerce in the Delhi High Court, accusing it of accessing company’s confidential business data, and accused that Unicommerce was using Paytm’s logo without consent.
While speaking to VCCircle, Amit Sinha told that the case was filed by the undivided Paytm, which is no longer in the ecommerce business and that is why it withdrew the case, and that Paytm will follow the matter. He also added that Paytm mall is not integrated with Unicommerce and it is being “projected that the Unicommerce platform allows Paytm as an option for merchants”, which he says is not true, and hence Paytm Mall will take legal action against it.
What happened before
Last year in April, Delhi High Court asked Unicommerce to stop using Paytm’s logo in Paytm’s font as well as edit a YouTube video in which the Paytm logo was used, and further told that Unicommerce will not be able to use Paytm’s trademarked logo in a normal font for anything other than describing Paytm. However, on the allegations of Unicommerce accessing information related to Paytm’s sellers, the Court ruled that Unicommerce should not access this information, neither use the info for itself. However, Unicommerce had denied Delhi HC’s order of using Paytm seller data without consent.