Paytm has been on a bit of an acquisition spree in the last few months, buying out Nearbuy and Little at the end of last year, and now Cube26, a software startup that develops operating systems on and Android base for original equipment manufacturers. Cube26 was financially backed by both Flipkart and Tiger Global Management, and was founded in 2012. As of 2015, the company had raised capital from both these investors to the tune of 7.7 million dollars. Paytm parent, One97 Communications Ltd. made the announcement that it would be acquiring Cube26 earlier today, but did not disclose the amount of money for which it would be acquiring the software company for.
Both companies have issued joint statements welcoming this union of their individual entities, citing the expertise that Cube26 has attained in making smarter products, an area in which Paytm hopes to be able to capitalize as India moves towards a largely digital and transparent economy which will be heavily reliant on online transactions. Paytm recently announced that it had moved past the 120-million user mark for its in-app messaging feature Paytm Inbox, and the current move for acquisition seems to coincide with the company’s attempts at providing a more robust framework that will foster even greater levels of adoption by users.
Paytm has been playing its card very close to its chest, having kept confidential the amount for which it first purchased Nearbuy and Little in December 2017, as well as what it invested in bringing together the levels of technical knowledge of both of these companies under a single business unit.