Paytm E-Commerce Pvt. Ltd, the marketplace arm of One97 Communications Ltd, is raising $200 million in a fresh round of funding led by Chinese e-commerce giant Alibaba Group Holding Ltd, documents filed with Registrar of Companies show.
Alibaba.com Singapore E-Commerce Pvt. Ltd, a wholly-owned subsidiary of Alibaba, will invest $177 million in Paytm’s e-commerce arm, along with $23 million by SAIF Partners, the documents show.
Bloomberg had reported in February that Alibaba is in talks to lead a $200-million round that will value Paytm’s marketplace at $1.1 billion, making its founder Vijay Shekhar Sharma a unicorn, twice over.
Following the deal, Alibaba.com Singapore E-Commerce will have a shareholding of 36.31 percent in Paytm E-Commerce, while SAIF Partners India will own 4.66 percent, according to the documents.
Paytm did not respond to an email seeking comments.
Paytm had last year split its e-commerce business from its larger payments unit, creating two separate entities, Paytm E-Commerce and Paytm Payments Bank Ltd.
Earlier this week, Paytm had also launched a separate app and website for its online marketplace business, Paytm Mall, which has over 17 fulfilment centres across the country.
Battle For Dominance
The investment will also mark Alibaba’s formal entry into India’s struggling e-commerce market and will provide Paytm the much-needed fuel to take on India’s largest online retailer Flipkart and Amazon.com Inc.
Amazon had announced last year that it will invest $3 billion more to step up its business in India. Flipkart and Snapdeal are also in talks to raise fresh funds.