According to sources, Paytm’s parent company, One97 Communications, is in advanced talks to raise fresh funding of about Rs 2,000 Crore from Taiwanese semiconductor maker MediaTek, Goldman Sachs, Singapore’s Temasek and other investors. If this round goes through, Paytm will stand at a valuation of around USD 5 Billion. In June when the previous funding round happened, Paytm was valued at $2.3 Billion.
Apart from the above investors, its existing investors – Chinese Internet giant Alibaba and its payments affiliate Alipay as well as venture capital firm SAIF Partners, will also be participating in the round. The money raised via this round will be deployed across all businesses – digital payments, online marketplace and the upcoming payments bank.
Set up earlier this month, Paytm E-commerce Pvt Ltd, will house the marketplace. It is expected to initially mirror parent One97’s shareholding.
Sources also say that this unit will go ahead to become the launchpad for Alibaba’s online operations in the country. Additionally, the Chinese company’s business-to-consumer site Tmall is expected to make its India debut in six months. Paytm Payment Bank was established to house the financial services business, by Vijay Shekhar Sharma, who holds the payments bank licence in his personal capacity. The entity also has CEO Shinjini Kumar and Ash Lilani as board members. The bank is likely to be launched in October.
The new round of financing comes after Alibaba and Alipay invested a total Rs 4,400 crore in 2015, according to Registrar of Companies (RoC) filings. Paytm has said it raised about $675 million from Alibaba and Alipay. It is also important to mention here that if the new funding round actually happens, it will be the largest financing round in the country’s broader technology and internet space this year. The existings ones at the top are the USD 200 Million raised by online marketplace Snapdeal and USD 150 Million by grocery retailer Bigbasket.