Online payment turned eCommerce portal Paytm has recent acquired the on-demand hyperlocal home service provider Near.in in a cash and stock deal. With this acquisition, Paytm eyes to strengthen its offline-to-offline (O2O) functions.
No exact announcements regarding the financial details of the acquisition have been released but it is estimated to be somewhere between $1.5 to $2 million.
The Gurgaon-based hyperlocal app is the brain child of Sunil Goyal and Lomesh Dutta which helps users to find home service professionals in their environs. Earlier the company had also secured seed funding of around 2 crores from serial entrepreneurs like Manish vij (SVG Media), Anupam Mittal (Shaadi.com), Prashant Tandon (CEO) and Gaurav Agarwal (CTO) of Healthkart.com, and Akash Agarwal, global vice-president of the mobile division of enterprise software maker SAP Labs.
As per the deal, Near.in founders will now join Paytm as Vice Presidents and the existing investors will take an exit.
Commenting on the acquisition, Kiran Vasi Reddy, Senior VP (Business) said, "O2O is a key focus area for Paytm and Near.in seemed a perfect fit for us, which has a credible team. While funds are not easily coming to a lot of companies, making the right purchase is crucial. Our investments in Jugnoo and Little reflect the same intent as to whoever bridges the gap between online and offline effectively is an attractive target,"
The Alibaba-backed company is looking to purchase a couple more startups in this space, he added.
Currently Near.in competes with well-funded bigger players like UrbanClap and Housejoy, besides a bunch of vertical marketplaces offering specific services like beauty and laundry.