It may be recalled that the last time too, the same three players including T Rowe Price, were at the forefront in the $1 billion funding exercise.

Paytm raises another 660 million backed by Softbank Alibaba
Money Funding Sunday, December 15, 2019 - 07:42

Paytm has again raised funds to the tune of $660 million following an infusion of $1 billion only last month. The investors this time are not very different from the previous rounds. Only, the vehicles or companies through which the funds have been channelized may be different this time. SoftBank is the major investor in Paytm and this time the funds have come from SVF Panther (Cayman). Similarly, Alibaba of China is a key investor in the company and its Alipay has picked up the tab this time. The other major investor is T Rowe Price via funds controlled by it.

It may be recalled that the last time too, the same three players were at the forefront in the $1 billion funding exercise. The startup is being valued at $16 billion, one of the reasons raising of funds is still easy for Paytm and its parent One97 Communications Ltd.

It has been gathered that One 97 Communications Limited will allot in all 2.6 million shares to the investors in this round of $660 million.

Paytm started off as a digital wallet and a QR-based payment channel. The company benefitted a lot during the demonetisation exercise carried out by the government in the end of 2016. It could scale up its subscriber base then. The company kept expanding horizontally as well adding more business units beyond the e-wallet. It took a licence for a Payments Bank. The Paytm Payments Bank is operational but it has since approached the RBI to convert itself into a small finance bank, which will enable it to lend and to take deposits beyond ₹1 lakh, things not possible as a Payments Bank.

This new development of a fresh fund raising of $660 million by Paytm has not been officially announced by the company, but located from the filings of the company with the authorities.

 

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