Paytm Mall raised $445 million for valuation of $1.9 billion

Paytm raised US$445 million for an e-Commerce business unit with a valuation of US$1.9 billion. India's online payment giant headquartered in Noida raised a funding round for the Paytm Mall platform where SoftBank Group and Alibaba Group participated by investing US$400 million and US$45 million respectively.

Paytm E-Commerce Pvt India. Ltd. is a new business unit operated Paytm with Paytm Mall brand. SoftBank invested US$400 million in its latest funding round and Alibaba put in US$45 million which overall increased the unit's valuation to US$1.9 billion.

Tinuku Paytm Mall raised $445 million for valuation of $1.9 billion

SoftBank has become one of the main investors in India's fast-growing e-commerce sector and already has a stake in the parent Paytm. The Tokyo-based giant confirmed the investment in Paytm Mall brand operated by Paytm E-Commerce.

"We believe Paytm Mall's offline-to-online operational model, combined with existing Paytm ecosystem strengths, is uniquely positioned to enable 15 million Indian offline retail stores to participate," SoftBank said in a statement on Monday.

Paytm Mall CEO Amit Sinha said the company will use the latest investments from SoftBank and Alibaba to improve technology and build superior logistics among other things. SoftBank India will get a 21.1 percent stake in Paytm E-Commerce after its upcoming investment in four stages.

Paytm E-Commerce competes with and Flipkart, Snapdeal and Amazon India. Paytm's parent company, One97 Communications Ltd, runs the largest digital wallet service in India and also owns shares in traditional banks. SoftBank also invested US$2.5 billion in Flipkart. The Japanese group is also one of the biggest investors here in Snapdeal.