SoftBank Invests $1.4 billion for Paytm Payment Bank; Grabs Seat Alongside Alibaba Group in Paytm Board
Paytm receives a whopping $1.4 billion investment from SoftBank and becomes the first Indian start-up to receive the largest fund from a single investor.
One97 Communications that operates Paytm has received $1.4 billion investment from SoftBank, a Japanese multinational company. According to reports from Business Standard, with this fund infusion, Paytm becomes the first Indian start-up to receive the largest investment from a single investor. Moreover, it is also SoftBank’s biggest investment in a single Indian company, so far.
This fund infusion in Paytm will help the digital payment platform to quickly expand their operations and launch their payment banks operation. Notably, RBI has already given its approval to Paytm for its payments bank, “Paytm Payment Bank,” which is set to start its operations from May 23. Additionally, this investment will also aid in increasing Paytm’s user base and introducing new financial products for their users.
With this investment SoftBank has also secured a seat in the Paytm board and as a major shareholder, joins the Alibaba Group. The chairman and CEO of SoftBank, Masayoshi Son has stated that they are committed to transform the lives of millions of Indians by giving them digital access to a wide range of financial services, which is also a stepping stone for the Indian government’s vision of a digital India, Financial Express reported.
Founder and CEO of Paytm, Vijay Shekhar Sharma has said in a statement over the next three to five years, the company plans to invest 10,000 crore to help half a billion Indian population to join mainstream economy. He further stated that the company is aiming for 4-4.5 billion transactions in this fiscal year.
It is worth mentioning here that the current market valuation of Paytm stands at an approximate value of $8 billion and it is said that the digital payment platform has 5 million merchants and around 220 million wallet users.