Ebay Buying in India’s Paytm Mall
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International e-commerce platform Ebay is preparing to head a US$160–170 million investment in e-tailer Paytm Mall.
In a report last Monday, the move was interpreted as a grab at O2O commerce and payments opportunities in India. It will be the third major e-commerce investment in the territory for the firm following its minors stakes in Flipkart and Snapdeal.
Paytm Mall raised about US$215 million from Japan’s SoftBank and existing investor Alibaba mid last year, at a valuation of $1.6–2 billion. It has raised roughly $645 million in funding to date.
The firm has a minority segment of the Indian market, which is largely dominated by its two biggest competitors Amazon and Flipkart.
Questions & Answers
Q.What is the total investment amount Ebay is making in Paytm Mall?
What is the total investment amount Ebay is making in Paytm Mall?
Ebay is preparing to lead an investment in Paytm Mall that is estimated to be between US$160 million and US$170 million. This move is seen as a strategic play for O2O commerce and payments in India.
Q.Who are the dominant players in the Indian e-commerce market?
Who are the dominant players in the Indian e-commerce market?
The Indian e-commerce market is largely dominated by two major competitors: Amazon and Flipkart. Paytm Mall currently holds only a minority segment of this market.
Q.What is the reported valuation of Paytm Mall?
What is the reported valuation of Paytm Mall?
Paytm Mall was valued at between US$1.6 billion and US$2 billion mid last year when it secured funding from SoftBank and existing investor Alibaba. To date, the company has raised approximately US$645 million in total funding.
Q.Has Ebay invested in other Indian e-commerce companies before?
Has Ebay invested in other Indian e-commerce companies before?
Yes, this will be Ebay's third significant e-commerce investment in India. The company previously held minor stakes in both Flipkart and Snapdeal, demonstrating its interest in the region.