California-based online market place eBay has reached a deal to pick up 5.5% equity in India’s Paytm Mall.
eBay is investing USD 165 million in the Noida-based firm taking the valuation of Paytm Mall to USD 3 billion, Livemint reported quoting a person in the know.
“We will jointly select the inventory we want to bring here. It will be done in a month’s time. We have done a recce. More than one million eBay products will be made available on Paytm Mall," CEO Vijay Shekhar Sharm said in an interview.
According to eMarketer, online retail sales in India are expected to hit USD 71.94 billion in 2022.
Paytm Mall is operated by Paytm E-Commerce Pvt. Ltd which also handles Paytm and Paytm Payments Bank.
“Today’s Indian consumers have expanded their horizon and now like shopping for unique products from international platforms," said Rudra Dalmia, executive director of Paytm Mall. “This new strategic collaboration will ensure Indian consumers are given greater access to eBay’s vast selection of inventory."
The new relationship between the two companies provides eBay sellers the opportunity to reach new customers in a rapidly growing market, while providing Paytm Mall buyers a wide selection of global inventory that would normally be out of reach locally.
At present, Paytm Mall is the third-largest in India’s e-commerce market after Flipkart and Amazon India.
The major investors in the includes SoftBank, Alibaba, SAIF Partners and Ant Financial.
Paytm Mall pulled the plug on its national e-commerce shipping business and pivoted to an O2O model in last January.
eBay is one of the world’s largest online marketplaces.
Paytm Mall is eBay’s third investment in India. The online marketplace has struggled to get a foothold in India on its own and made investments in Snapdeal and Flipkart, both of which the company exited.
“This new relationship will accelerate our cross-border trade efforts in a rapidly growing market," said Jooman Park, senior vice president for Asia Pacific at eBay.