Paytm spends $25 million to add Nearbuy, Little to its cart
New Delhi, December 7
Deals platforms Nearbuy and Little Internet have merged their operations with Paytm picking up a majority stake in the combined entity, the financial services platform said today.
While the companies declined to offer details about the deal, multiple sources said Paytm has invested $25 million (over Rs 161.45 crore) and will hold 51% stake in the joint entity.
The sources added that founders of Little — Manish Chopra and Satish Mani — will exit following the merger.
In a statement issued today, Paytm said: “Paytm’s strategic holding in Nearbuy-Little will provide our merchant partners an opportunity to offer deals to acquire new customers and grow their business”.
It added that the deal will create India’s largest discovery and deals platform for local merchants.
Also, existing shareholders of Nearbuy, including Sequoia India, will also become shareholders of the merged entity that will work with over 40,000 merchants across categories like food, beauty and travel.
Besides, Paytm will also showcase a large number of these deals on its platforms for consumers at a later stage.
Paytm has been actively investing in various companies to beef up its online services offerings. In July, it had acquired stake in online ticketing and events platform Insider.in.
Formerly part of Groupon, Nearbuy parted from the parent in 2015. It was rebranded as Nearbuy after the promoters of the Indian arm and private equity investor Sequoia pumped in funds. Nearbuy chief executive Ankur Warikoo said Little Internet and Nearbuy combined will own 88% of the market share. — PTI
