US-based ecommerce company eBay has announced a strategic partnership with Paytm Mall along with acquiring a 5.5% stake in the Indian ecommerce marketplace.
Through this partnership, eBay inventory will be made accessible to the active customer base of Paytm Mall, a subsidiary of the Indian fintech unicorn Paytm. It would also enable eBay sellers to reach new customers in the rapidly growing Indian market.
According to Paytm Mall, the strategic partnership should allow it to overcome cross-border trade challenges such as high delivery costs, returns and long timelines, while ensuring that regulatory requirements are met, including the payment of customs duties.
The overall Paytm ecosystem claims to have over 450 million registered customers, over 130 million active users and more than 12 million registered merchants. Founded in 2017, Delhi NCR-based Paytm Mall is said to have recorded a gross merchandise value (GMV) of $2.1 billion in 2018. Paytm Mall is backed by investors such as SoftBank, Alibaba, SAIF and Ant Financial.
“We are deeply committed to India and believe there is huge growth potential and significant opportunity in this dynamic market,”said Jooman Park, eBay Senior Vice President, APAC.