EBay said today it is buying a 5.5% stake in the e-commerce market Paytm Mall as a global company is making another push to gain a footprint in the rapidly growing Indian e-commerce market.
The two companies did not disclose the financial terms of the deal, but a source familiar with the matter told TechCrunch that EBay had invested $ 150 million to $ 200 million in Paytm Mall with a $ 3 billion valuation, up from less than $ 2 billion last year. The source said Paytm Mall raised about $ 650 million before announcing today.
The agreement will see more than 1 million EBay products available for purchase at Paytm Mall, Vijay Shekhar Sharma, Said the founder and CEO of Paytm in a statement. We will choose together the inventory that we want to bring here. This will be done within a month. "The company said eBay would continue to operate the e-commerce site in India.
The deal could boost Paytm Mall in India, where it competes Walmart – Owned Flickrart, And Amazon India. Online retail sales in India are expected to grow to about $ 72 billion within three years, according to research firm eMarketer.
Paytm Mall, supported by SoftBank, Alibaba, The financial ant, And SAIF Partners, reported GMV sales worth $ 188 million in 2018. Last year, sales in the arm of One97 Communications, which also manages Paytm's portfolio, It lost momentum After cutting down the noble offerings it was dealing with customers, according to Economic Times Report.
Like Amazon and Flipkart, Paytm Mall operates on a stock-based model in India, but in recent months it has focused on offline or offline models where customer orders from local brand stores are served. A second source for TechCrunch said Paytm Mall plans to develop its non-inventory-based models strongly. Paytm Mall claims to have more than 100,000 vendor partners on its platform.
This is the third investment for eBay in India. Company provided her The country's first investment in Snapdeal in 2013Then on Fleckart. distance Walmart acquired an Indian company for $ 16 billionEBay Sold its share for $ 1.1 billion And re-launched its e-commerce website with a focus on cross-border trade.
"We are very committed to India and believe that there is tremendous potential for growth and a great opportunity in this dynamic market," said Goman Park, EBAC's Senior Vice President for EBAC at eBay. "This new relationship will accelerate our cross-border business efforts in a rapidly growing market, providing hundreds of millions of Paytm and Paytm Mall customers with access to the unparalleled EBay product range."