(Eds: Adds more details, quotes)New Delhi, Dec 7 (PTI) Deals platforms Nearbuy and LittleInternet have merged their operations with Paytm picking up amajority stake in the combined entity, the financial servicesplatform said today.
While the companies declined to offer details about thedeal, multiple sources said Paytm has invested USD 25 million(over Rs 161.45 crore) and will hold 51 per cent stake in thejoint entity.
The sources added that founders of Little - Manish Chopraand Satish Mani - will exit following the merger.
The entities are expected to clock cumulative revenues ofunder USD 100 million by March, 2018, they said.
The sources did not wish to be identified as the deal isprivate.
Paytm, which was an investor in Little, declined tocomment on the matter.
In a statement issued today, Paytm said: "Paytm'sstrategic holding in Nearbuy-Little will provide our merchantpartners an opportunity to offer deals to acquire newcustomers and grow their business".
It added that the deal will create IndiaÂ’s largestdiscovery and deals platform for local merchants.
Also, existing shareholders of Nearbuy, including SequoiaIndia, will also become shareholders of the merged entity thatwill work with over 40,000 merchants across categories likefood, beauty and travel.
Besides, Paytm will also showcase a large number of thesedeals on its platforms for consumers at a later stage.
"This combination of Nearbuy and Little marks a greatopportunity for us to reinforce our commitment to supportsmall and large retailers in the new age of mobile commerceand Payments," Paytm founder and CEO Vijay Shekhar Sharmasaid.
Paytm has been actively investing in various companies tobeef up its online services offerings. In July, it hadacquired stake in online ticketing and events platformInsider.in.
Formerly part of Groupon, Nearbuy parted from the parentin 2015. It was rebranded as Nearbuy after the promoters ofthe Indian arm and private equity investor Sequoia pumped infunds.
Speaking to PTI, Nearbuy chief executive Ankur Warikoosaid Little Internet and Nearbuy combined will own 88 per centof the market share.
"By end of 2018, we plan to be working with 100,000merchants... There are around half-a-million merchants in theorganised retail space, which we would like to bring on ourplatform," he added. PTI SRSA.
This is unedited, unformatted feed from the Press Trust of India wire.