Paytm on Thursday said that it has raised $1.4 billion from Japanese investor SoftBank Group Corp. Following this, SoftBank joins Alibaba Group as a major shareholder and will take a seat on the Paytm board. SoftBank’s investment in One97 Communications, the parent company of Paytm would value Paytm at about $7 billion. In August 2016, Paytm had mopped up $60 million from chip maker MediaTek Inc at a valuation of about $5 billion.
“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,” said Vijay Shekhar Sharma, Paytm founder and CEO.
“Paytm plans to invest Rs 10,000 crore over next three to five years towards its commitment to enabling half a billion Indians to join the mainstream economy,” the statement added.
Masayoshi Son, chairman and CEO, SoftBank Group added, “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.” FE