InvestorQ : What could be the implications of the potential deal between Paytm and Grofers?
Arti Chavan made post

What could be the implications of the potential deal between Paytm and Grofers?

Answer
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5 months ago


Paytm Mall is in talks with e-grocer (Grofers) for a potential investment. Interestingly, Japan’s Softbank is a common investor in Paytm Mall and Grofers and was the one to initiate the deal talks. Softbank has been under pressure due to the huge hit it took on WeWork investment running into billions of dollars. Hence it is looking to get more involved and initiate restructuring and deals to create value in its existing investments. Paytm Mall has $170 million cash on hand and could be the right candidate to back Grofers. This sector has been under some strain on account of COVID-19. For Softbank, the push to bring the companies together is largely aimed at helping Grofers access that cash.