- In Modi, Trump has a leader he can truly work with: experts
- Monsoon session of Parliament from July 17 to Aug 11
- Over 140 people feared buried in China landslide
- Modi to be first world leader to have WH dinner with Trump
- DU announces first cut-off list
- Srikanth reaches 3rd successive Super Series final
- Modi embarks on three-nation tour
SoftBank opens up wallet for Paytm; infuses Rs 9K crore
Japanese conglomerate SoftBank has pumped in $1.4 billion (over Rs 9,079 crore) in Indian digital payments platform, Paytm, marking the largest fund infusion by a single investor in an Indian start-up.
This is Softbank’s largest investment in a single company in India. While both the companies have declined to comment on the valuation, market watchers say that the deal values Paytm at about $8 billion.
The funding will help Paytm expand fast its soon-to-be launched payments bank operations as well as grow its user base and introduce more financial products for consumers.
SoftBank joins Alibaba and its payments affiliate Ant Financial as amongst the largest investors in One97 Communications which operates Paytm. Interestingly, SoftBank was an early investor in Alibaba.
“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,” SoftBank Group Chairman and CEO, Masayoshi Son said.
SoftBank has committed investment of over $10 billion in the Indian market. While it has pumped in close to $2 billion into Indian startups like Snapdeal and Ola in last few years, it has also written off a significant portion of that on account of loss in valuation.
The fund infusion in Paytm comes at a time when SoftBank is working on a sale plan of e-commerce firm Snapdeal. SoftBank is the largest shareholder in Snapdeal, which is locked in an intense battle with Amazon India and Flipkart.
Flipkart - which is in talks to buy Snapdeal - had raised a similar amount last month, although from three investors Tencent, eBay and Microsoft. It was dubbed the largest capital raised in the Indian internet sector.
Paytm has been one of the prominent beneficiaries of the government’s move to scrap high denomination notes. Paytm has seen manifold growth in transactions on its platform as well as expansion in number of users.
Paytm founder and CEO Vijay Shekhar Sharma said: “This investment by Softbank and support of the incredible entrepreneur Masayoshi Son is a great endorsement of our team’s execution and vision.”
The company plans to invest Rs 10,000 crore over the next three to five years to enable half a billion Indians to join the mainstream economy, the statement said.
Paytm offers mobile wallet (over 220 million users) and e-commerce services and will launch its payments bank operations from May 23. It had raised $60 million from Taiwanese chip maker MediaTek last year.
- Samsung pledges support to ‘Safe India’ campaign 25 Jun 2017 | PTI
- TCS, Hyderabad Engg college sign pact for collaboration 25 Jun 2017 | PTI
- CBDT notifies new scrutiny notices with e-facility for taxpayers 25 Jun 2017 | PTI
- States’ fiscal deficit FY’16 soars to Rs 4.93 tn 25 Jun 2017 | PTI
- ‘Privatisation talks not to affect AI's expansion plans’ 25 Jun 2017 | PTI
- Finalising modalities of Rs 13,000-crore cap allocation plan: Infy 25 Jun 2017 | PTI
- Ordinance likely to amend SEZ Act for alignment with GST 25 Jun 2017 | PTI
- GST Clinics to help traders in smooth transition, says CAIT 25 Jun 2017 | PTI
- GST to make exports more competitive, says Nirmala 25 Jun 2017 | PTI
- DHL to invest $100 mn in India to meet GST challenges 24 Jun 2017 | PTI
Sunday EditionView All
25 Jun 2017 | Shipra Parashar/ Srishti Garg | New Delhi
With Delhi University declaring its first cut-off list on Friday, SGTB Khalsa college came out with the highest 99.66 per cent for BSc (Hons) Electronics...
STATE EDITIONSView All
25 Jun 2017 | PNS | Dehradun
A regimented protocol of ‘Fast Track Bypass surgeries’ in which a patient can get discharged in three days has been initiated by the Max hospital here. Addressing media persons Senior Consultant Cardiovascular and Thoracic Surgery (CTVS), Dr Manish Meswani said that Coronary Artery Bypass Graft Surgery (CABG) involves counselling of patient and fast tracking the conventional processes...