19 April 2017, India:
One of India’s leading mobile wallet and e-commerce marketplace Paytm might raise 1.2-1.5 billion from SoftBank group in cash in a deal that could raise Paytm’s valuation to $7-9 billion as per the report by ET.
SoftBank, when contacted, refused to comment on the issue. However, a source said digital payment was a lucrative space to be in for the bank. “If SoftBank manages to close the deal with Alibaba, it would get a stake in the country’s largest wallet,” the source said. Alibaba, which has a 40 per cent stake in Paytm, has invested close to $1 billion in the company.
“The discussions are still preliminary. If the talks reach a conclusion, SoftBank is ready to back Paytm with long-term plans,” a person aware of the development told TOI.
SoftBank is the largest shareholder in Snapdeal, which is locked in an intense battle with Amazon India and Flipkart. One of the sources said Paytm may buy Snapdeal-owned payments firm Freecharge as part of the transaction with SoftBank.
The funding will also help Paytm accelerate expansion ahead of the launch of its payments bank service. The Alibaba-backed company already runs mobile wallet and e-commerce services. Image- (IndianCEO.in)