Alibaba-backed online marketplace company Paytm is in talks for a fresh round of funding for investment in banking and finance, besides other expansion plans. The company is looking to raise around Rs 12,000 crore from Japan’s SoftBank.
The deal will value the Noida-based company at around $9 billion and provide a 20% stake to Soft-Bank, according to two people familiar with the transaction.
“The deal was agreed on earlier this week and is now waiting for board approval,”
said one person.
Paytm last raised funding from Taiwanese semiconductor maker MediaTek about eight months ago, when it was valued at $4.8 billion.
In August 2016, after securing a $60 Mn funding round, One97 Communications, which runs Paytm, created a separate entity called Paytm E-Commerce Pvt. Ltd and transferred its online retail business onto it. Paytm’s founder Vijay Shekhar Sharma had also announced plans to invest $120 Million-$149 Million in developing the new entity.
The company has been burning a lot of money as well while on the growth path. In the fourth quarter of FY2017, the company spent over $105 million on various projects, including expansion in Canada. Payments banks can accept deposits from individuals and small businesses of up to Rs 1 lakh per account.