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Paytm Approaches Investors for A $16 Billion Valuation

Recently, in news reports, Paytm is in a close scoring of $2 billion new financings. This comes from investors, including Jack Ma’s Ant Financial and SoftBank Group Corp.

According to the source, it is describing a mega-deal that will promote India’s increasingly heated financial payments arena.

Rob Citrone’s Discovery Capital Management is also in negotiations to join a funding round. The funding also values the country’s top online financial services firm at $16 billion.

According to the source who asked not to be identified, the arrangement was about a private deal.

The division of the funding will be even between equity and debt. Moreover, it aims at supporting Paytm to prevent an influx of rivals.

Meanwhile, talks are in their final stages, but the terms could still change anytime.

If a deal is settled, Paytm could surpass fellow high-profile Asian startups such as Grab and Gojek in valuation.

On the other side, Billionaire Paytm founder Vijay Shekhar Sharma is also raising capital.

This is to guard the startup’s share of a possible $1 trillion Indian payments market against newer entrants Facebook Inc., Alphabet Inc.’s Google, and Walmart Inc.-owned Flipkart’s PhonePe.

New Apps for Progressively Easy Payment

Over the past year, a thread of new apps has made payments progressively easy. Moreover, it is bringing discounts and cash bonuses to young, smartphone-savvy users.

Paytm remains the groundbreaker for now. In a decade, the firm has become India’s biggest digital payments brand.

The company is also attracting big names in investing from Alibaba co-founder Ma and SoftBank founder Masayoshi Son to Warren Buffett.

In 2016, Sharma got a vast improvement. This was after India’s government has moved in, disregarding most of the nation’s paper money in circulation. This is in a bid to curb corruption.

Meanwhile, His startup, a pioneer in the country’s nascent field, saw ten-millions of consumers and hundreds of thousands of industries signing up for digital services in a matter of months.

Kunal Pande, head of financial services risk consulting at KPMG, stated, “India is a large market.”

He also added, “Digital payments adoption is multiplying, yet there is room for massive growth as users get comfortable transacting digitally. The huge business opportunity makes it attractive for both domestic startups and large global players.”



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