12 March, 2016, Bangalore: One of the leaders in online payments and commerce platform, Paytm has taken a loan of Rs 300 cr from ICICI Bank. While answering to media queries about the development, Vijay Shekhar Sharma, Founder, Paytm said, “This is a treasury management move for working capital. While adequate funds are there, it is advised by our finance teams to get these credit lines for working capital on the back of security such as FDs (fixed deposits), mutual funds, etc., in order to conserve cash.”
However, ICICI declined to answer any media queries. Even the mail sent to the bank by media agencies, remained answered.
According to the latest documents filed by Paytm with the Registrar of Companies (RoC), the company has pledged cash assets as security with the bank. Last year, Paytm had taken a small loan of Rs 15 crore for working capital requirements from HDFC Bank which has been repaid by the Noida-based company, RoC documents show, reports TOI.
In a similar move last week, Flipkart had also received a loan of Rs 450 crore from HDFC Bank on its fixed deposit.
Recently, Paytm got backing from Chinese ecommerce giant Alibaba. It ventured into the market as an online payment platform but later on, entered online commerce sector.