Paytm is an Indian e-commerce shopping website headquartered in Noida, India, launched in 2010. It is owned by One97 Communications The firm started by offering mobile recharging, adding bill payment and e-commerce, with products similar to businesses such as Flipkart, Amazon.com, Snapdeal. In 2015, it added booking bus travel.As a fresh move, Online payments and commerce platform Paytm has taken a loan of close to Rs 300 crore from ICICI Bank in two tranches, a move that analysts say reflects the slowdown in venture capital (VC) investing. Earlier similar trend was observed when Flipkart disclosed that it had secured a credit line of Rs 450 crore from HDFC Bank by pledging fixed deposits.
When enquired about the development, Paytm founder Vijay Shekhar Sharma said,
“This is a treasury management move for working capital. While adequate funds are there, it is advised by our finance teams to get these credit lines for working capital on the back of security such as FDs (fixed deposits), mutual funds, etc, in order to conserve cash.”
Paytm has followed suit with Flipkart since it has also filed documents with the Registrar of Companies stating that the company has pledged cash assets as security with the bank.
Paytm is now gearing up to launch a payments bank, which would require additional capital.