Paytm has raised USD 1.4 Bn funding from SoftBank Group. The investment was done in Paytm’s parent company One97 Communications. With this, Softbank became one of the major shareholder and will take a seat on the Paytm board.
Paytm plans to invest about USD 1.6 Bn over the next three to five years towards its commitment to enabling India’s digital economy. As per a company statement, the newly raised funding will be used to grow its leadership in the country’s payment ecosystem, expand its user base, and build a suite of financial services products for its users.
Commenting about the funding, Masayoshi Son, Chairman & CEO, SoftBank Group Corp., said:
“In line with the Indian government’s vision to promote digital inclusion, we are committed to transforming the lives of hundreds of millions of Indian consumers and merchants by providing them digital access to a broad array of financial services, including mobile payments. We are excited to partner with Paytm in this journey and will provide them with all our support.”
We recently had published about Paytm being all set to roll out its payments bank on May 23, 2017. This news of Paytm being in talks with Softbank to raise USD 1.5 Bn in a cash deal had been doing the rounds for some time now. Speaking on the occasion, Paytm founder & CEO Vijay Shekhar Sharma said,
“We are at an inflection point in our journey with Paytm. This investment by Softbank and support of the incredible entrepreneur Masa Son is a great endorsement of our team’s execution and vision. We believe we have a great opportunity to bring financial inclusion to half a billion Indians.”
Earlier this week, Sixth Sense Ventures founder and CEO Nikhil Vora managed to raise about USD 23.4 Mn by selling his stake in One97 Communications. The stake was sold to Chinese ecommerce giant Alibaba Group Holdings. Alibaba and its affiliate Alipay now jointly hold about 45% in One97 Communications. Vora had invested in the company in 2011 and picked up a 0.35% stake or 1,60,000 shares of One97 Communications. The stake sale valued Paytm at about USD 6.6 Bn.