Paytm to raise Rs 12K crore to become a $9 billion firm
Fresh round of fund raising by Paytm is seen as single largest funding in India's digital commerce segment.
Mumbai: Digital wallet company Paytm has finally revealed it will raise Rs 12,000 crore from Japanese multinational internet and telecom major SoftBank, according to a report in The Economic Times.
The fresh round of fund raising by One97 Communications-led Paytm has been touted as the largest single round of funding that has ever taken place in India in digital commerce segment.
The report quoted two sources privy to the development as saying that the deal would increase the Japanese major's stake in One97 Communications to 20 per cent and make Indian digital wallet provider a $9 billion company.
"The deal was agreed on earlier this week and is now waiting for board approval," a person familiar with the initial talks said. A finding by Boston Consulting Group claims in India transactions through digital mode of payments would touch $500 billion by 2020.
Paytm is a fast growing digital transactions company and its founder and chief executive Vijay Shekhar Sharma has bagged a licence for Paytm Payments Bank. Last year it raised money from MediaTek, a Taiwan-based maker of semiconductor chips.
The report also added One97 Communications now wants to expand its payments business into high growth areas like lending and insurance, and for the purpose it has kept aside a $1 billion investment.