Vijay Sharma-backed Paytm E-commerce rebrands, acquires startup Bitsila

Paytm E-commerce changed its name to Pai Platforms and acquired ONDC's merchant platform Bitsila to gain share in the online retail business.

The company applied for a name change about three months ago and received approval from the Registrar of Companies on February 8, according to people familiar with the process.

“…from the date of issuance of this certificate, the company name has been changed from Paytm E-Commerce Private Limited to Pai Platforms Private Limited…This company was originally incorporated as Paytm E-Commerce Private Limited. ”, according to a notice from the Registrar of Companies dated February 8.

Elevation Capital is the largest shareholder in Paytm E-commerce. It is also backed by Paytm founder and CEO Vijay Shekhar Sharma, Softbank and eBay.

The company has now acquired Innobits Solutions Private Limited (Bitsila), which was founded in 2020 and operates as an ONDC merchant platform with full-stack omnichannel and hyperlocal commerce capabilities, according to people familiar with the matter.

“Pai Platforms is the ONDC network's leading buyer platform, and the acquisition of Bitsila will further strengthen its commerce business,” the person said.

Bitsila was launched in 2020 and is included in ONDC's top 3 sales platforms. ONDC supports famous brands such as McDonald's, BigBasket, etc.

“Bitsila’s full-stack omnichannel and hyperlocal commerce capabilities are driving growth, allowing us to manage over 600 million product categories across 10,000+ stores in over 30 cities. It caters to various sectors such as food, beverages, fashion, beauty, personal care (BPC), home decor, etc.,” the source said.

“Regulatory Action Against Paytm Payments Bank”

Meanwhile, Paytm has come under fire after the central bank stopped accepting new deposits by its subsidiaries from February 29, although the RBI said the move was due to “sustained defaults” by the payments bank. It is claimed that However, RBI said that this regulatory action is against Paytm Payments Bank and the Paytm app will not be affected.

“Let me make one thing clear: this particular action is against Paytm Payments Bank and should not be confused with Paytm apps…apps are not affected by this action,” RBI's Swaminathan J. The Deputy Governor made this comment in a media response after the bimonthly monetary policy meeting. Committee (MPC) meeting. Following the RBI clarification, a Paytm spokesperson told his PTI: “We would like to assure our users and merchant partners that the Paytm app remains fully operational and our services are unaffected.” continues to function. Our commitment to providing seamless payment solutions and promoting financial inclusion across India is as strong as ever,” the spokesperson added.