SoftBank Group is investing USD 400 million in India's Paytm E-Commerce Pvt. Ltd. in a funding round that will value the online retailer at roughly USD 1.9 billion, a regulatory filing showed on Monday.
Alibaba, an existing investor in Paytm E-Commerce, is also putting in USD 45 million in the round, the filing showed.
SoftBank, which is among major investors in India's fast-growing e-commerce sector and already owns a stake in Paytm's parent, confirmed investing in Paytm Mall, the brand name under which Paytm E-Commerce operates an online marketplace.
"We believe Paytm Mall's offline-to-online operating model, combined with the strength of the Paytm ecosystem, is uniquely positioned to enable India's 15 million offline retail shops to participate in India's e-commerce boom," SoftBank said in a statement on Monday.
In a separate statement, Amit Sinha, a chief operating officer of Paytm Mall said the company would deploy the latest investment from SoftBank and Alibaba to beef up its technology and build superior logistics among other things.
A filing with India's Registrar of Companies showed SoftBank units will get a 21.1 percent stake in Paytm E-Commerce after the investment which would come in four tranches.
Alibaba.Com Singapore E-Commerce Pvt. Ltd, which currently owns 36.3 percent of the Indian e-retailer, will remain the single-largest shareholder of Paytm E-Commerce but with a relatively smaller stake of just over 30 percent after its latest investment is completed in four tranches.
Paytm E-Commerce competes with Amazon.com Inc's Indian unit and home-grown Flipkart. A group company of Paytm's parent One97 Communications Ltd runs India's biggest digital wallet services and also has a stake in a payments bank.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)