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Paytm Mall gets $445 million investment from Alibaba and Softbank

Paytm Mall, the e-commerce arm of payments company Paytm, has raised $445 million (around Rs 2,900 crore) from Japan’s Softbank and existing investor Alibaba in a new round of funding that will come in four tranches, documents filed at the Ministry of Corporate Affairs (MCA) have revealed. SoftBank will invest $400 million, with an additional $45 million coming from Alibaba, the documents show. The first tranche of $55 million has already been received by the company. The deal values Paytm Mall, run by Paytm E-commerce Pvt. Ltd, at around $1.9 billion the Economic Times reported. Currently, Alibaba along with Alipay holds 57% stake in Paytm Mall. But after the fourth tranche of investment concludes, SoftBank will hold 21% and Alibaba (with Alipay) will hold around 46% stake in the company. In a statement to Reuters, Amit Sinha the 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. Paytm Mall which claims a run rate of $3 billion in gross merchandising value, says it is aiming for a $10 billion run rate at the end of fiscal 2018-2019. The company's MCA filings reveal that it is expected to close FY18 with a loss of around Rs 1,013 crore, which is significantly steeper than FY17 where it had garnered a loss of Rs 13.6 crore. According to the company, brick and mortar stores signed up on its platform drive over 60% of…

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