mCommerce company Paytm is all set to invest $10 to 15 million in the first institutional round of funding in logistics data analytics firm LogiNext, to bolster its delivery vertical.
A spokesperson from Paytm has confirmed that this investment is a part of the company’s plan to pump around $150 million in over a dozen startups.
“The reason behind backing LogiNext was to add muscle to the firm’s logistic piece,” stated Kiran Vasireddy , senior VP (business), Paytm.
Founded by Dhruvil Sanghvi and Manisha Raisinghani in 2014, LogiNext was a part of the first batch of GenNext Innovation Hub, an incubator set up by the Mukesh Ambani-led Reliance Industries along with Microsoft Ventures. Currently, LogiNext caters to customers in the medium and large enterprises. The data analytics startup received a funding of $500,000 from Indian Angel Network in April this year. The startup employs technology to provide real-time visibility and optimization solutions to logistics companies.
Paytm which is backed by Ant Financial, an affiliate of the Alibaba Group, was started as an online mobile recharge facilitator, eventually evolving into an mCommerce retailer. In the current scenario, the company is facing direct competition from other eCommerce firms like Flipkart, Snapdeal and Amazon.
Of late, Vijay Shekhar Sharma led company has been making quite some noise in the ecosystem with the multiple moves it is making to strengthen its foothold in the market. One of the biggest announcements made by the company was getting an approval from the RBI to open payment bank. To read more about the recent steps taken by the company, click here.
Based on a Deloitte report on global retailing, ASSOCHAM stated that mCommerce would touch $638 billion by 2018. Extending this to the Indian scenario, mCommerce seems to be the future for India.