Ant Financial and SoftBank back it with full force; money will go for expansion in small cities, towns
In a mega funding round, Paytm, the country’s top financial technology entity, has raised a billion dollars (Rs 7,200 crore), at a valuation of $16 billion, from existing shareholders Ant Financial, Softbank Vision Fund and also new investors, including funds and accounts advised by T Rowe Price Associates, among others.
Discovery Capital, an existing shareholder, also participated in the round. Paytm plans to invest Rs 10,000 crore over the next three years, with the stated aim of expanding its services in tier-III cities and smaller towns.
With this funding round, the Vijay Shekhar Sharma-led fintech giant has become a top-tier Asian digital firm, much ahead of others. In this round, the company made a $1-billion equity closure, where SoftBank Vision Fund (SVF) invested $200 million, Jack Ma’s Ant Financial added $400 million and the balance amount came from T Rowe Price and Discovery, among others.
This has happened in a climate where investors are not making big bets on companies and SoftBank is still reeling from the WeWork Initial Public Offer debacle. Till now, Paytm has raised a little over $2.5 billion in investments. Proceeds from the latest round would be directed towards further expanding it’s payment and financial services business….
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