Paytm Acquires Deal Discovery Platforms Nearbuy And Little, To Merge Both
Paytm announced today that it has acquired majority stakes in deal discovery platforms Nearbuy and Little together for an undisclosed amount. The payment major said that it had arranged a merger of both companies and picked up a majority stake in the combined entity, reports Mint.
Following the merger, Sequoia Capital India (investor in Nearbuy) will continue to be a stakeholder in the merged entity.
Nearbuy, which was founded as SoSasta, was acquired by NASDAQ-listed Groupon Inc. in 2011.
The company was later renamed as Groupon India, in 2013.
In 2015, Sequoia Capital India and the current chief executive officer (CEO) Ankur Warikoo bought a majority stake from the US-based parent of the firm and named it Nearbuy.
Little app (Little Internet Pvt. Ltd), on the other hand, was launched in 2015 with initial backing from Paytm, which wanted to test the waters in the hyperlocal deals business.
The app started with a $50 million investment from Paytm, SAIF Partners and Tiger Global Management (SAIF is also a large minority shareholder in Paytm).
“This combination of Nearbuy and Little marks a great opportunity for us to reinforce our commitment to support small and large retailers in the new age of mobile commerce and payments. I am sure consumers will love the greater selection and reach of everyday deals and discount offers,” said Vijay Shekhar Sharma, founder and CEO of Paytm.
After raising $1.4 billion from Softbank, Paytm has been eyeing multiple acquisition and strategic investments. It acquired a majority stake in Mumbai-based online ticketing platform, Insider.in in June this year.
The company also invested an undisclosed amount in mobile loyalty and data analytics firm MobiQuest Mobile Technologies in July.
It was also in talks to acquire travel booking site Via.com and seems close to participating in $200 million strategic investment round in grocery delivery major Bigbasket with Alibaba.