Paytm Mall’s Valuation shrinks by 99.5% to $13 Mn as Alibaba and Ant Group exits

Paytm Mall

Early investors Alibaba and Ant Group have exited Vijay Shekhar Sharma’s Paytm Mall, which was formerly valued at over $3 billion in its last fundraising round. The news comes as the company prepares to explore export business potential through the country’s Open Network for Digital Commerce (ONDC).

According to Mint’s report, Paytm E-Commerce, the company that runs Paytm Mall, has acquired back the whole interests of Alibaba’s 28.34 per cent and Antfin (Netherlands) Holdings’ (14.98%) for just INR 42 crore.

The startup’s worth has plunged by nearly 99 per cent as a result of this exit, to just $12.8 million (INR 100 Cr).

In 2018, Paytm Mall, a B2C e-commerce marketplace, became a unicorn after raising $445 million in an investment round sponsored by SoftBank and Alibaba. This funding boosted the startup’s valuation from $1.6 billion to $2 billion.

eBay purchased a 5.5% stake in Paytm Mall later in 2019 for roughly $150 million to $200 million, valuing the company at $3 billion.

Paytm Mall claims that switching to ONDC will help it build a long-term sustainable business while democratizing goods buying and selling in India. Paytm Mall’s decision follows the selection of roughly 24 e-commerce and hyperlocal delivery businesses for the ONDC’s trial phase.ONDC’s trial project included Flipkart, Dunzo, and PhonePe, among others.

The Indian government stated that it wants to strengthen the process, which is expected to take six months, before officially launching the ONDC initiative.

Union Minister Piyush Goyal of the Department for Promotion of Industry and Internal Trade (DPIIT) is leading the program, which is backed by major institutions like State Bank of India, Axis Bank, HDFC Bank, and Kotak Mahindra.

Moreover, SBI paid INR 10 crore for a 7.84 per cent stake in ONDC earlier this year. Axis Bank and Kotak Mahindra are two other banks that own shares worth INR 10 crore.

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