Paytm today said it has acquired deals and discovery platforms, Nearbuy and Little, merged them and acquired a majority stake in the merged entity.
As part of the deal, Paytm has also made a strategic investment in the combined entity. Paytm has infused around $25 million, one person privy to the development told BloombergQuint requesting anonymity.
Sequoia, which is a large investor in Nearbuy, and other existing investors of Nearbuy will continue to be shareholders in the merged entity.
The deal is set to help Paytm strengthen its online-to-offline (O2O) play, as merchants will be able to leverage the platform by offering deals and discounts to the customers, according to a company statement.
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.Vijay Shekhar Sharma, Founder and Chief Executive Officer, Paytm
Nearbuy and Little work with over 40,000 small and large merchants across food, beauty, travel and other categories.
Little, launched in 2015, raised $50 million from Paytm, SAIF partners, Tiger Global, and others the same year. Nearbuy on the other hand was founded in 2011, was acquired by NASDAQ-listed Groupon Inc, and later renamed Groupon India. In 2015, Sequoia Capital invested Rs 100 crore to become the majority shareholder of the firm and named it Nearbuy.