Paytm Mall now a unicorn; gets Rs 3Kcr from SoftBank & Alibaba

While Paytm has been busy revamping its app, its e-commerce subsidiary Paytm Mall has gained coveted unicorn status after raising around Rs 3000 crore from Japan's SoftBank and Chinese e-commerce giant Alibaba Group.

SoftBank will invest Rs 2,600 crore in Paytm Mall, with the rest coming from Alibaba, according to the documents filed with the Ministry of Corporate Affairs (MCA).

The funding is expected to come in four tranches, as per the MCA filings. Currently, Alibaba along with Alipay holds 57 percent stake in Paytm Mall. However, after the fourth tranche of financing concludes, SoftBank Vision Fund will hold 21 percent and Alibaba (with Alipay) will hold around 46 percent stake in the e-commerce company.

Amit Sinha, COO of Paytm Mall, said, "This latest investment led by SoftBank and Alibaba reaffirms the strength of our business model, growth trajectory, execution capability and the potential of India’s massive O2O model in the retail space.”

Sinha said that the fresh funding will be utilized to beef up its technology and build superior logistics among other things. Notably, this deal values Paytm Mall close to Rs 12,300 crore or $1.9 billion, giving it the coveted unicorn status.

In the past few months Paytm Mall has brought in several new initiatives to expand its reach and customers. Last month, the e-commerce company launched a new model of retail allowing customers to walk into brick and mortar stores, scan product QR codes, browse information and make purchases via the Paytm Mall app