Paytm Mall, the e-commerce arm of payments company Paytm, has raised $200 million (around Rs 1500 crore) from Japan’s Softbank in a new round of funding. The company’s documents filed at the Ministry of Corporate Affairs (MCA) revealed. Along with this, Softbank’s executive Kabir Misra will be joining the Paytm Mall’s board. However, John Michael Evans of Alibaba has stepped down from the board of directors of the company.
SoftBank and Alibaba have committed a total of $445 million in Paytm Mall. With this tranche, SoftBank apparently holds 21% stakes in the company and Alibaba (with Alipay) holds around 46%.
Paytm Mall’s previous highlights
In April, Paytm Mall, run by Paytm E-commerce Pvt. Ltd, raised $445 million (around Rs 2,900 crore) from Softbank and Alibaba. At that time, in a statement to Reuters, Amit Sinha the chief operating officer of Paytm Mall had said that 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 previous MCA filings revealed 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 total sales. It has currently partnered with 75,000 stores and aims to triple its offline presence by the end of 2019. Paytm Mall currently serves 700 towns across India.
In August 2017, Paytm Mall invested $5 million to get on board 50,000 offline sellers. The programme was called Retailer Inclusion Programme which according to the company was implemented to “address support and empower these shopkeepers to challenge large monolithic online retailers.”
The company had set up a team of 500 personnel to work with retailers and act as a direct link between the company and its partner retailers. It had also said it would partner with external financial organizations to enable working capital loans ranging from Rs 10,000 to Rs 25 lakh for these retailers.