SoftBank Invests $1.4 billion in India's Paytm

SoftBank Invests $1.4 billion in India's Paytm

The company was valued at $6 billion in March when Paytm's existing investors Reliance Capital, SVB and SAP ventures sold their stakes of about 4.3% to Alibaba Group & Ant Financial Services Group.

With this one-time investment of Dollars 1.4 billion, SoftBank will hold a 20 percent direct stake in Paytm, along with a 12 percent indirect holding through its majority stake in Alibaba, the Chinese internet giant that has 40 percent stake in One97, Paytm's parent company.

Japanese conglomerate SoftBank has pumped $1.4 billion (over Rs 9,079 crore) into One97 Communications Ltd, an entity that operates the mobile payments and e-commerce platform under the Paytm brand. 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 its payments bank operations as well as grow its user base and introduce more financial products for consumers.

This $1.4 billion deal includes $400 million worth of shares that SoftBank will buy largely from Paytm's early investor SAIF Partners in a secondary transaction and a minor stake from founder Vijay Shekhar Sharma. "As a part of this vision, the company will soon launch the Paytm Payments Bank, a mobile-first product that will reach every corner of the nation, and focus on the millions of unserved and under-served Indians", the company statement said.

The fund infusion in Paytm comes at a time when SoftBank is working on a sale plan of e-commerce firm Snapdeal.

The company further added: "We have been going from strength to strength in our payments division. We believe we have a great opportunity to bring financial inclusion to half a billion Indians", Sharma said in a statement.

Paytm has 220 million users in Asia's third-biggest economy and plans to spend USD1.5 billion over the next three to five years on expanding its services.

In addition, Paytm witnessed an uptake in its movie ticketing and travel booking (rail, bus and flight tickets) businesses. Paytm has recently collaborated with MMTC-PAMP to launch digital gold on its platform.

Paytm will launch its Payments Bank Operation from May 23. One of the biggest gainers of that demonetization was a start-up called Paytm, who via persistent advertising were already gaining popularity as a cashless app or mobile wallet in the Indian market.

Related Articles

  • French ex-PM wants to join Macron's party

    French ex-PM wants to join Macron's party

    The abstention rate was 25.44 percent compared with a rate of 22.23 percent during the first round of the election on April 23. Macron was endorsed by the overwhelming majority of French politicians, many European leaders, and by former U.S.

    Glenn Loovens: "Sheffield Wednesday are ready for the Premier League"

    We will feel it from the stands on Sunday. "The pressure has been on them since they have got in the play-offs". We have a final at Hillsborough , we will be ready. "It's only about timing to be there at the right moment".
    Mnuchin Says U.S. Reserves Right To Be Protectionist

    Mnuchin Says U.S. Reserves Right To Be Protectionist

    Greece's creditors, including the European Central Bank and the International Monetary Fund, will be in Bari . Mnuchin is taking the opportunity to lay out the Trump administration's views on trade.
  • Ryan has full confidence in Trump

    Comey about why, if this happened as he allegedly describes, why he didn't take action at the time ", he continued. No politician in history , and I say this with great surety, has been treated worse or more unfairly.

    Predators Continue Home Winning Streak, Beat Ducks 2-1 In Game 3

    In total, Anaheim has held a lead for less than 24 minutes in the past 255 minutes of game time over its last five outings. The gold-clad crowd helped the Predators come out buzzing to start the third, and it wasn't long before they tied it.
    NBA Draft 2017: Should Celtics trade or keep No. 1 pick?

    NBA Draft 2017: Should Celtics trade or keep No. 1 pick?

    The lottery basically determines the first 14 picks in the draft and includes the teams that did not qualify for the postseason. ESPN lists Markelle Fultz , Ball, De'Aaron Fox, Josh Jackson and Jayson Tatum as candidates to be selected first overall.
  • Russian FM mocks US media over intelligence-sharing reports

    Russian FM mocks US media over intelligence-sharing reports

    President Donald Trump had disclosed classified intelligence during a meeting with Russian officials. McMaster, who said it was " wholly appropriate " to divulge that to the Russians.
    Sirius XM Holdings Inc. (NASDAQ:SIRI) Volume Spiking Mid-session

    Sirius XM Holdings Inc. (NASDAQ:SIRI) Volume Spiking Mid-session

    Ross Stores, Inc. (NASDAQ:ROST)'s shares on Wednesday traded in the range of 61.22 - 62.43 and ended up on $61.52. ILLEGAL ACTIVITY NOTICE: This piece of content was originally posted by BBNS and is the sole property of of BBNS.

    How to Shield Your System Against WannaCry Ransomware Attack

    The term ransomware refers to malicious software that infects or locks a computer, preventing access to files. The good news is, these attacks are preventable if you keep your software up to date and your guard up.
  • Times Square vehicle  suspect 'told police he wanted to kill them all'

    Times Square vehicle suspect 'told police he wanted to kill them all'

    A week ago he was arrested and charged with pointing a knife at a notary, whom he accused of stealing his identity. Police identified the woman killed by the vehicle as Alyssa Elsman, of Portage, Michigan. "She was bright.
    Turkish violence in Washington presents new Trump headache

    Turkish violence in Washington presents new Trump headache

    Police Chief Peter Newsham, the situation was especially "dicey" because some of the Turkish guards were armed. He said police were examining video to identify those responsible. "This is the United States of America".

    Congress seeks Comey testimony as Russian Federation turmoil engulfs Trump

    Trump himself hasn't directly addressed the latest allegations that he pressured Comey to drop the Flynn investigation. Obama's security team asked for Trump's sign-off, as the plan would likely take place after Trump's inauguration.