eBay invests $150 million in Paytm Mall for 5.5% stake

In its third bet on the Indian e-commerce market, eBay Inc has invested around $100-$150 million (around Rs 1,000 crore) in domestic e-tailer Paytm Mall for a 5.5 percent stake, according to sources privy to the development. The US-based c-commerce company exited from Flipkart in 2018.

Paytm founder Vijay Shekhar Sharma confirmed the investment but did not disclose the details.

Before investing in Paytm Mall, eBay invested in rival Snapdeal and Flipkart.

It is learnt that, while it still has equity in Snapdeal, it has decided to sell its $1.1 billion stake in Flipkart, following the company's acquisition by US-based Walmart in 2018.

The development happens amid reports of a management shakeout in Paytm Mall earlier this year. The company has been trying to revamp the business which has of-late seen tough competition from bigger rivals such as Flipkart and Amazon.

Meanwhile, even as it has invested in the company, eBay is expected to continue its e-commerce portal in India.

As per the deal, eBay will make its inventory accessible to the customer of Paytm Mall in India.

“We are deeply committed to India and believe there is huge growth potential and significant opportunity in this dynamic market,” said Jooman Park, eBay Senior Vice President, APAC.

“This new relationship will accelerate our cross-border trade efforts in a rapidly growing market, providing hundreds of millions of Paytm and Paytm Mall customers with access to eBay’s unparalleled selection of goods," he added.