Paytm Mall mulls investments in Grofers, Milkbasket: Report
Paytm Mall has also reportedly begun talks to invest in or acquire Milkbasket.
May 29, 2020 / 09:35 AM IST
Paytm Mall is considering making an investment in Grofers since common investor SoftBank is looking to consolidate the businesses.
Japanese conglomerate SoftBank has initiated the deal talks, according to a report by The Economic Times.
"SoftBank does not have any fresh capital, so it is looking to push consolidation and an investment or a merger between Grofers and Paytm Mall is something that will work," a source told the publication.
Moneycontrol could not independently verify the story.
"We are not aware of any investments by Paytm Mall. We are an independent business and do not comment on speculation," Grofers said in response to a query by The Economic Times.
Paytm Mall is in a good position to make an investment since it has around $170 million of cash on hand, the report said.
"SoftBank wants Grofers to get their (Paytm Mall) cash or absorb it back into Paytm given new money will be hard to come for the company," a source told the paper.
SoftBank's Vision Fund is Grofers' largest shareholder, owning over 40 percent of the company, the report said.
SoftBank Group has a 20 percent holding in Paytm Mall.
Paytm Mall has also begun talks to invest in or acquire Milkbasket, the report added.
A spokesperson for Paytm Mall denied the merger talks, while SoftBank had not yet responded to queries.
Milkbasket had not yet responded when contacted by The Economic Times.
Online grocers have risen in popularity amid the COVID-19 outbreak and consequent nationwide lockdown.