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Paytm's possible acquisition of Little is in a fairly advanced stage with the latter's board agreeing for the deal, a person familiar with the development told VCCircle. It wants to retain the current management of Little but no clarity on this has emerged yet. While Paytm is already on track to merge Little with itself, it is separately pursuing the acquisition of Nearbuy. Paytm wants to acquire both Little and Nearbuy as it wants to quickly ramp up its deal business. Given its reach, Paytm aspires to become the top player in the deals space, said another person.

It is also looking to step up its e-commerce business. Gurgaon-based Nearbuy features hyperlocal offers in segments such as food and beverages, spa, salons, wellness and getaways while Little is a mobile marketplace for offline deals, including restaurants, movies, hotels, salons, gyms and spas.

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Groupon Inc. Chopra and Mani had earlier co-founded fashion marketplace Zovi. Meanwhile, Little has been expanding through a string of acquisitions. It bought Chandigarh-based curated deals marketplace Trideal in October Pay Now.

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