The following article is based on my own interpretation of the said events. Any material borrowed from published and unpublished sources has been appropriately referenced. I will bear the sole responsibility for anything that is found to have been copied or misappropriated or misrepresented in the following post.
Subham Das , MBA 2014-16, Vinod Gupta School of Management, IIT Kharagpur
On 11th March,2015 The Economic Times reported, “There is no reason why Alibaba can’t invest in both Paytm and Snapdeal. Snapdeal has been negotiating with Alibaba since their last round and every time they differ on the valuation front.”
On 13th March, the Financial Express reported, “Flush with funds, having raised about $575 million from Chinese e-commerce major Alibaba affiliate Ant Financial Services against a 25% stake, Paytm plans to achieve a gross merchandise value of $4 billion next fiscal, up from the present $1 billion. It has SAIF Partners, Intel Capital and SAP Ventures among other investors. Sharma and SAIF Partners, which has so far invested about $70 million in the company, continue to remain majority shareholders.”
On 13th March, Mr. Ratan Tata publicly showed his support for Paytm and expressed his willingness to join the board of Paytm. This is obviously a very good sign for the mobile payment e-commerce site of India. Mobile payment space in e-commerce is hugely evolving and it’s a great way to tap the mobile-consumer market. With ever increasing mobile user market in India, the internet recharge sites like Paytm, Freecharge have almost eliminated the local kirana shops recharge business.
With the new investments pouring in and with the support of business tycoon such as Mr. Ratan Tata, we can expect a lot more innovation and new service offerings from Paytm in the near future.