India-based digital wallet company, PayTM.com recently acquired two deal offering platforms Little and Nearbuy. PayTM was earlier said to buy out Gurugram-based NearBuy and now company also acquired Bengaluru-based Little app. According to various media reports, Company is looking forward to merge both these apps to offers a single platform. PayTM does not wants to hold at being just a digital wallet and this acquisition is considered to one such step towards it.
PayTM acquires major deal platforms, Nearbuy and Little
Nearbuy’s initial investor, Sequoia Capital India continues to be a shareholder and it is not clear whether Sequoia Capital sold its stake to PayTM. Nearbuy, in 2011 started as SoSasta and then acquired by Groupon and it was marked as Groupon’s entry into Indian market. Ankur Warikoo took over as the CEO of the company. In 2015, Groupon India witness a major revamp and renamed as Nearbuy when Sequioa Capital India bought a majority stake out with $17 million.
Another company acquired by PayTM is Little was founded by Manish Chopra and Satish Mani, persons behind online fashion e-retailer, Zovi. Little raised $50 Million funding from PayTm, SAIF Partners and Tiger Global Management.
PayTM founder, Vijay Shankar Sharma, on acquisition said that
“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.”
Acquisition of these deal platforms will benefit company in certain ways such as strengthening relationship with merchants. Now PayTM will be able to sell its deals to users of these platforms. Both Neabuy and Little had large user database. Little itself offers 50000+ deals and have more than 25000 working merchants with it. Merged entity of Nearbuy and Little, will get new user-base as it will be backed by PayTM now.
Earlier, PayTM acquired majority stake in Insider.in (a ticketing platform) followed by its investment in MobiQuest’s loyalty platform m’loyal. Further, launching its marketing fund and then partnering with PVRs and then launch of whatsapp like inbox chatting service, WeChat clearly indicates that company is moving hard to becoming much more than a digital wallet.