India-based online retailer Paytm Mall is aiming to raise between $500m and $600m in a funding round led by telecoms and internet group SoftBank, the Times of India reported today.
SoftBank is considering an investment of approximately $300m, according to an unnamed source who spoke to the Times. The deal is expected to close by the end of the year and may also feature unnamed US investors.
Paytm Mall, launched in 2016 as Paytm E-Commerce, is a spinout of Paytm, the mobile payment platform established by e-commerce and online services group One97 Communications. One97 has since restructured Paytm and Paytm Mall into independent units.
Paytm Mall has created an online marketplace for brick and mortar retailers. It currently counts approximately 30,000 sellers after it delisted some 85,000 vendors to improve the quality of products on its site.
SoftBank already owns a 20% stake in One97, having invested $1.4bn in May 2017, including the purchase of $400m worth of shares from VC firm and early investor SAIF Partners, and Vijay Shekhar Sharma, founder of One97.
Paytm Mall previously obtained $200m in a funding round led by e-commerce group Alibaba, with participation from SAIF Partners in March 2017. The deal gave Alibaba a majority stake of just over 50% in the business.