Alibaba has earmarked $2 billion for Paytm Mall. SoftBank will put in additional money. Paytm Mall will suddenly be flush with cash like its larger rivals. Flipkart has got a $6 billion war chest, and Amazon has $2.5 billion left from Jeff Bezos’ announced commitment to the India market.
With all the money Paytm Mall has, Alibaba plans to make it a price warrior. “Product prices will be about 20-25% cheaper than what Amazon and Flipkart sell them for,” said the first executive. “With deep pockets we will win… In China, too, we offered the products at 25% cheaper than what competitors’ prices. That was the reason for our success.”