Paytm Mall in talks with eBay to raise $200
Paytm Mall has a total raised $645Million from Alibaba and SoftBank and they hold 30.15 percent and 21% stake in the company
Paytm Mall valuation has now dropped to $600-800 Million from $2 Billion.
Paytm mall has seen a gradual decline in its business from being third largest Indian e-commerce company competiting SoftBank and Alibaba capital on cashbacks and freebies. But it ignored fundamentals and in October-November 2018, Paytm Mall came to know that it can’t maintain the cash back policy and gradually its customer base initiated downscaling and company faced a loss of $250 Million in FY 2017-18. With this loss company also faced massive leadership and middle management attrition while facing the seller’s flak for unsold inventories. The company is gradually facing a drop in its B2C domain.
Now paytm Mall is in talks with eBay to raise $200 Million. If the deal gets done then Paytm mall will have to suffer a drop in its valuation. The E-commerce giant was valued $2 Billion when it raised $445 million from SoftBank and Alibaba in April last year but its valuation has now dropped to $600-800 Million.
EBay has quit with Flipkart and has acquired a 5.4% stake in it by investing $514 million in cash. Paytm Mall has total raised $645 Million and Alibaba’s Singapore entity owns 30.15 percent stake in the firm while Japanese Conglomerate SoftBank holds over 21% stake.
Paytm Mall was called One97 Communication in late 2016 and that time it took shortest time to become a unicorn. This was attained by tried and tested cash back model of Paytm itself. But this model further failed to work for Paytm mall.
EBay has relaunched in the country seven weeks ago but its matter of speculation why it is planning to invest in Paytm Mall since it is lacking in any appropriate business strategy and if eBay invests $200 Million in Paytm Mall then also its matter of concern that how Paytm Mall will compete with well-established e-commerce giants Amazon and Flipkart.
Stay connected with us for latest updates!
- The impact of COVID-19 on the life of people who make the latest styled clothes - August 17, 2020
- Are Data Science, Data Analytics, Artificial Intelligence & Machine Learning running the engine of the Aarogya Setu app? - April 28, 2020
- Table Reservation Venture, EazyDiner raises $5.9 million in Series B funding round - April 24, 2020