Business

Paytm Mall’s valuation plunges 99% as Jack Ma sells 43% share


With its key backer’s Chinese internet giant Alibaba and investment firm Ant Financial exiting the firm, Vijay Shekhar Sharma’s Paytm Mall, which is One97 Communications’ e-commerce division, has witnessed a roughly 99.5 per cent valuation collapse. Alibaba and Ant Financial are both leaving Paytm Mall, according to a statement released by the company.

The news follows the company’s announcement yesterday that it will join the ONDC, signalling a shift away from traditional physical goods e-commerce. According to the company’s statement, it will explore the export potential.

Vijay Shekhar Sharma

Vijay Shekhar Sharma, the CEO of Paytm holds majority stake in the proposed payments bank.Wikimedia Commons

According to the resolution, Alibaba will exit with over $3.5 million and Ant Group will exit with over $1.8 million, and both will write off their interests. Paytm Mall will repay these investors at the current share price of Rs 459 a share, valuing the company at approximately $13 million. The company’s worth has plummeted by 99.5 per cent since its peak in July 2019, when it was valued at $3 billion after eBay led a $160 million round.

Paytm Mall

Paytm MallPaytm

In the face of fierce competition from Amazon, Flipkart, and Reliance, Vijay Shekhar Sharma’s bet on offline-to-online commerce through Paytm Mall failed. Paytm Mall announced its shift to India’s Open Network Digital Commerce (ONDC) on Monday, with a greater emphasis on e-commerce exports.

Vijay Shekhar Sharma, in a Tweet, said, “Keeping in mind our attention to building an open platform for e-commerce, our Paytm Mall’s business now be built on ONDC Official. It will be cost-effective, scalable, and bring an even larger impact to small businesses.”





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