The US giant eBay is once again coming back to mark its place in the online retail market with a stronger strategy this time.
In order to make a firm stand in India’s rising e-commerce market, eBay has decided to buy a 5.5% stake in the e-commerce marketplace Paytm Mall.
eBay, San Jose, California-based firm, is making an attempt to find its place among the big names, including Amazon and Walmart-owned Flipkart in the e-commerce market in India.
As reported by livemint, the companies issued a joint statement on Wednesday but the deal value was not disclosed. Both Paytm and eBay did not mention whether eBay can further increase its hold of Paytm shares in the future with this deal.
According to the news reports, eBay is all set to invest $165 million in Paytm Mall, the Noida-based firm. Interestingly, eBay investment in Paytm Mall will almost double the value of Paytm Mall to $3 billion from $1.5-2 billion last year. According to the eBay Paytm Mall deal, some inventory from eBay will be made available on the Paytm Mall.
The eBay Paytm Mall partnership will raise the competition on another level in India’s online retail market. Amazon, Walmart-owned Flipkart, Snapdeal, and some other big names in the online market will face a tough game from this deal.
eBay is eyeing a greater share of India’s online retail sales with this deal. According to the market researcher eMarketer, the retail e-commerce sales in India will reach $71.94 billion by 2022, from $32.7 billion in 2018.
India’s online market saw a major boost due to increased awareness about the internet among almost all generations. The use of smartphones is not limited to millennials but it is popular among people of all age. eBay is one of the largest online marketplaces in the world, however, the e-commerce platform has always found it tough to crack the Indian market.