Digital payments platform Paytm has received funding to the tune of $1.4 billion (approximate Rs 9,000 crore) from Japanese conglomerate SoftBank. Paytm, which is set to start its payments bank operations from Monday, said it will use the money to attract more users and to offer them more financial services, PTI reported.
As part of the funding, SoftBank has bought $1-billion worth of new shares in One97, the parent company of Paytm, Reuters reported. This gives SoftBank a 14.2% stake in Paytm and $400 million worth of existing shares. Paytm added that the deal entitles SoftBank to a board seat in the Indian company.
“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.
Paytm founder and CEO Vijay Shekhar Sharma said, “This investment by Softbank and support of the incredible entrepreneur Masa Son is a great endorsement of our team’s execution and vision,”
SoftBank has earlier pumped in funds in startup ventures like Snapdeal and Ola. It has also invested in Alibaba, the Chinese conglomerate.