India’s Paytm raises $1 bln: reports

The India-based payments announced that it raised a new round of funding from new investors, including funds advised by T. Rowe Price Associates

Paytm, a payments company based in India, said it raised a new round of funding from new investors, including funds and accounts advised by T. Rowe Price Associates Inc. Existing shareholders such as Ant Financial and Softbank Vision Fund, participated in the round, as well as Discovery Capital. Paytm did not disclose the amount it raised, but press reports pegged the funding at $1 billion in equity at a $16 billion valuation. Paytm is in talks for another $1 billion in debt, Bloomberg reported.

PRESS RELEASE

At Paytm, we have been committed to expanding the reach and adoption of Payments and Financial Services in our country. We are today announcing our latest equity fundraise from a group of investors, including existing shareholders such as Ant Financial, Softbank Vision Fund, and new investors including funds and accounts advised by T. Rowe Price Associates, Inc. among others. Discovery Capital, an existing shareholder of the company has also participated in the round.

In its first phase of growth, we pioneered low-cost digital payment acceptability in India using our QR-code technology in local shops and retailers. Currently, serving merchants in over 2000 towns and cities spanning across 650 districts, our aim is to bring low-cost mobile-enabled financial services to rural India. We will invest and support millions of rural Indians towards self-sustainability through job creation.

In the next phase, we are expanding our offerings in consumer internet and accelerating the vision of bringing new-age financial services such as lending, insurance, investments, stockbroking to the masses. We are also strengthening user engagement with content services under Paytm Inbox that offers games, news, videos and more.

Our Founder & CEO, Vijay Shekhar Sharma shared,

“At Paytm, we are committed to bringing half a billion Indians to the mainstream economy by onboarding them in the formal financial ecosystem. This new investment by our current and new investors is a reaffirmation of our commitment to serve Indians with new-age financial services.”

We will invest Rs. 10,000 Cr. over the next 3 years to bring financial inclusion to more underserved users in the country.