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Paytm raises $1.4 bn from SoftBank, funding to expand payments bank ops

Will help it to grow its user base and introduce more financial products for consumers

Press Trust of India  |  New Delhi 

Paytm

Japanese conglomerate SoftBank has pumped in $1.4 billion (over Rs 9,079 crore) in Indian payments platform,

The funding will help — operated by One97 Communications — expand its soon-to-be launched payments operations as well as grow its user base and introduce more financial products for consumers.


"In line with the Indian government's vision to promote inclusion, we are committed to transforming the lives of hundreds of millions of Indian consumers and merchants by providing them access to a broad array of financial services, including mobile payments," SoftBank Group Chairman and CEO said.

SoftBank, which was an early investor in Alibaba, has committed of over $10 billion in While it has pumped in close to $2 billion into Indian startups like Snapdeal, Ola and Housing.Com in last few years, it has also written off a significant portion of that on account of loss in valuation.

The investment comes at a time when SoftBank is working on a sale plan of e-commerce firm Snapdeal. SoftBank is the largest shareholder in Snapdeal, which is locked in an intense battle with and Flipkart.

has been one of the prominent beneficiaries of the government's move last November to scrap high denomination notes. It has seen manifold growth in transactions on its platform as well as expansion in number of users.

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."

The company plans to invest Rs 10,000 crore over the next three to five years to enable half a billion Indians to join the mainstream economy, said in a joint statement.

offers mobile wallet (over 220 million users) and e-commerce services and will launch its payments operations from May 23. It had raised $60 million from Taiwanese chip maker MediaTek last year.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Thu, May 18 2017. 17:23 IST
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