India-based online retail service Paytm E-Commerce is lining up between $180m and $200m in new funding led by e-commerce group Alibaba that will value it at $1bn, DealStreetAsia reported today.
News emerged in August 2016 that e-commerce group One97 Communications planned to spin out Paytm, the mobile payment platform it formed in 2010, with external funding.
Paytm E-Commerce, which oversees the firm’s e-commerce functions, will be renamed PaytmMall and will continue to operate in that space.
The existing Paytm entity offers a mobile wallet as well as the ability to pay bills or recharge phone credit, and received regulatory approval last month to provide banking services. It will operate separately to the e-commerce side of the business but will maintain a link.
Alibaba’s involvement will take the share of Paytm E-Commerce it owns together with financial services affiliate Ant Financial to more than 50%, and venture capital firm and existing backer SAIF Partners will also invest, two people familiar with the matter told DealStreetAsia.
One97 was said in August 2016 to be lining up a $300m funding round led by fabless semiconductor maker MediaTek that would value the overall company at $5bn, but such a round was never confirmed.
One97 has disclosed a total of about $970m in funding, with Alibaba and Ant Financial reportedly investing $880m. They currently own 42% of the company, and other investors include Intel Capital, chipmaker Intel’s corporate venturing unit, as well as Silicon Valley Bank and Sapphire Ventures.