The online market place Paytm is likely to spin off its marketplace business, an Economic Times report says. The company source said that final terms of the spinoff are in final stages and it is likely to happen by next month.
Paytm’s spinoff will pave way direct entry of Chinese e-commerce space Alibaba into the Indian online retail space. Till date, Alibaba was present in the country through Snapdeal and Paytm.
Entry of Alibaba will add to the competition already in the industry and could lead to some consolidation. The company plans to debut its B2C (business-to-consumer) site Tsmall in India soon.
The e-tailer, before the separation, has decided to join the festival sale bandwagon. Its three-day Maha Bazar sale will begin on October 12 and go on till October 17 and will offer attractive cashbacks upto Rs 100 crore too.
The sale will offer discounts on categories like kitchen and fashion.
Paytm’s contemporaries – Flipkart, Amazon and Snapdeal – had their festival sales at the start of October. Snapdeal has kickstarted another sale today offering discounts on mobile phones and fashion.
Amazon too is having another sale from October 17-20.
Paytm declined to comment on reports of spinoff.