One97 Communications Ltd, the parent of Paytm, has secured a massive funding of $1.4 billion from Japan’s SoftBank Group Corp. The latest deal is in one of the largest funding rounds by a single investor.
As a result of the investment SoftBank will get a board seat in Paytm. Alibaba and its payments affiliate Ant Financial held a 40 percent stake in One97 before this investment. The latest deal values One97 at $7 billion. Paytm plans to invest about $1.6 billion (around Rs. 10,000 crore) over the next 3-5 years to rope in 500 million customers. Currently, Paytm has 220 million customers
Paytm said in a statement,
As a part of this vision, the company will soon launch the Paytm Payments Bank, a mobile-first product that will reach every corner of the nation, and focus on the millions of unserved and under-served Indians.
Last week, Paytm signed a non-exclusive term sheet to acquire rival wallet player FreeCharge.