US-based marketplace Ebay buys 5.5% stake in Paytm Mall, owned by leading digital payments company, Paytm. According to media reports, the deal will be valued a little over $150 million. And after the investment, Noida-headquartered Paytm Mall be valued close to $3 billion, said sources privy to the development.
"As part of this collaboration, eBay is making an investment in Paytm Mall for a stake of approximately 5.5 percent," Chief Executive Officer Devin Wenig said, according to Reuters.
The investment by eBay will provide an impetus to Paytm as the company in past few months has undergone a major restructuring in its business model with offline commerce (O20) as well as confronted a cashback fraud.
As per the deal, the US-based online e-commerce company will bring with it its global inventory onto Paytm's platform. "This investment is a clear testament of our turnaround, and the shopkeeper commerce model (O2O) being validated by a new set of investors," Vijay Shekhar Sharma, founder of Paytm, was quoted as saying in The Economic Times report.