In a bid to boost its presence in the hyperlocal space, online payments platform Paytm is reportedly in advanced talks to acquire two deals providing platforms – Nearbuy and Little.
While it is not yet known at what valuation the deals are being discussed, but people aware of the matter have said that both deals may happen at distress prices. As per the reports, this is the second attempt by Paytm to acquire Little. Earlier, the company’s acquisition offer was rejected.
Interestingly, Paytm is already an investor in Little app. Along with SAIF Partners, Paytm had invested around $50 million in the deal discovery mobile app. As a part of the funding round, Vijay Shekhar Sharma and Alok Goel got board seats at Little.
SAIF Partners, which is also a minority stake holder in Paytm, is reportedly playing a key role in negotiating the acquisition deal.
Paytm seems to be in an expansion mode for quite some time. Along with being an online payments platform, the company is allowing users to book movies, make reservations for hotels and travel, among others.
The company recently acquired a majority stake in ticketing platform Insider.in to allow events on Insider.in to show up on Paytm. With the acquisition of Nearby and Little, the Noida-based startup is hoping to accelerate mobile transactions on its platform.
Nearbuy, based in Gurugram, was previously a part of NASDAQ-listed Groupon Inc. It spun-out into a separate entity in the year 2015, and was rebranded as Nearby with an organizational reshuffle.
Little is a mobile marketplace for offline deals including restaurants, movies, hotels, salons, gyms and spas. For merchants, it acts as a sales platform they can use to gain intelligence about customers in the vicinity, send timely notifications and offer relevant deals.
Paytm is also focusing on its e-commerce venture Paytm Mall, and aims to scale up the platform rapidly to take on Flipkart and Amazon. It has set aside ₹1,000 crore for marketing and promotion during the festive season sale.