In yet another major move, @Paytm is set to acquire a mammoth 5.5 lakh sq ft space in Noida’s sector-105. This deal will mark the company’s entry into the real estate investment space and comes at an over Rs 500 crore valuation of Paytm new office , which is a wholesale online retail platform operated by Paytm Ecommerce Pvt Ltd.
Source: Paytm
This acquisition marks a big step for the Alibaba backed ecommerce giant which has been pushing aggressively in offline commerce after selling its stake in One97 Communications, which runs its mobile wallet business. The Chinese conglomerate will now be holding 49% stake in the core e-commerce business (which includes payments arm), while rest of its shareholding will come from existing investors like SAIF Partners and Ant Financial, the payments affiliate of ecommerce company Alibaba.
With this move, Paytm new office will now independently function as a wholesale cash-and-carry platform. Its main competitors in this space include Reliance Retail, Metro Cash and Carry (MCC) and Amazon Wholesale India which is present across Delhi-NCR, Mumbai and Bangalore with three warehouses.
The mall, which is under construction and expected to be completed by July 2018, will have a built-up area of 5.5 lakh sq ft with 21 floors, multi-level car parking, shopping complex and gourmet restaurants. The company is also planning to set up a fulfilment centre in the building that will help it deliver products to retailers and small businesses in the NCR region.
“This mall will act as an engine for growth for us. We are looking to partner with local kiranas (grocery stores) and small businesses and help them grow their business by providing them access to our technology, logistics and payment platform,” said Amit Sinha, COO of Paytm Mall.
The development of this mall comes at a time when the government is pushing its ‘Digital India’ and ‘Make in India’ initiatives and aims to create an enabling ecosystem for small businesses to participate in the country’s fast-growing digital economy.
“This mall will act as an engine for growth for us. We are looking to partner with local kiranas (grocery stores) and small businesses and help them grow their business by providing them access to our technology, logistics and payment platform,” said Amit Sinha, COO of Paytm Mall.
The development of this mall comes at a time when the government is pushing its ‘Digital India’ and ‘Make in India’ initiatives and aims to create an enabling ecosystem for small businesses to participate in the country’s fast-growing digital economy.
Sources in the know say that the investment parameters of this project is over Rs 500 crore, and on completion it will be one of Paytm’s largest real estate asset backed by a long-term lease. Other than this, Paytm Mall has recently acquired CRZ Infraprojects for an undisclosed amount to boost its logistics business. With this acquisition, CRZ Infraprojects will help Paytm achieve scale and add critical capabilities like warehousing and fulfilment centers across India.
Paytm new office also recently entered into a strategic agreement with Droom, the country’s first online marketplace for buying and selling new cars and used cars. The company plans to invest $100 million (Rs 650 crore) in this joint venture which will see the launch of a new online marketplace for used automobiles.
The company is also planning to set up a fulfilment centre in the building that will help it deliver products to retailers and small businesses in the NCR region.
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