Updated February 9th, 2024 at 17:22 IST
Paytm renames e-commerce arm, acquires ONDC seller firm
The development comes as RBI halted Paytm’s payments business
Shopping amid snub: Paytm has renamed its e-commerce arm to Pai Platforms, with the Registrar of Companies approving the name change.
Amid the Reserve Bank of India halting onboarding and select operations for Paytm’s banking arm, Paytm has also acquired Bitsila, which is a seller platform on ONDC.
Paytm and ONDC did not immediately confirm the development.
The move will help the listed fintech gaining share in the online retail business. It has already launched Paytm se ONDC, touted as a third e-commerce frontier competing with Amazon and Flipkart.
The company had applied for a name change around three months ago and got the approval from the Registrar of Companies on February 8, sources aware of the development said.
"... The name of the company has been changed from Paytm E-Commerce Private Limited to Pai Platforms Private Limited with effect from the date of this certificate... The company was originally incorporated with the name Paytm E-Commerce Private Limited," according to a Registrar of Companies notification dated February 8.
Paytm E-commerce is backed by Elevation Capital as its largest shareholder, and is also backed by the fintech’s Founder and CEO Vijay Shekhar Sharma apart from Japan’s Softbank and Americna e-commerce eBay.
The company has also acquired Innobits Solutions Private Limited (Bitsila), as per sources aware of the matter.
Bitsila was launched in 2020 as an ONDC seller platform with full-stack omnichannel and hyperlocal commerce capability.
"Pai Platforms is a leading buyer platform on the ONDC network and Bitsila acquisition will further bolster its commerce play," the source said.
Bitsila is among top three seller platforms on ONDC, and supports marquee brands in the likes of McDonald's and BigBasket on ONDC.
"The full-stack omnichannel and hyperlocal commerce capabilities of Bitsila have fuelled its growth, allowing it to manage over 600 million product categories across over 10,000 stores in more than 30 cities. The platform caters to various sectors, including grocery, food and beverages, fashion, beauty, personal care (BPC), and home decor," the source said
The RBI asked Paytm Payments Bank last week to halt onboarding, which it said was due to ‘persistent non-compliance.’
Published February 9th, 2024 at 17:22 IST