Alibaba-backed Paytm has managed to raise $300 million which is over Rs 2,000 crores. Paytm s fresh funding comes from a clutch of investors, including Taiwanese semiconductor maker MediaTek and Goldman Sachs. According to sources, Paytm will announce the deal in the coming weeks and the financing round is also expected to see participation of existing investors, Alibaba and its payments affiliate Alipay as well as venture capital firm SAIF Partners. This will take Paytm’s valuation to about $5 billion (roughly Rs 33,543 crores). The funds will be used across Paytm’s businesses, including digital payments, online marketplace with a special focus on the upcoming payments bank. Also Read - How to book COVID-19 vaccine slot via Paytm App, get Covaxin and Covishield shots with these simple stepsAlso Read - Alert! Paytm cashback scam: Fake Paytm website, it's a trick to steal your money
Paytm has so far raised almost $700 million (roughly Rs 4,696 crores) from Alibaba and Alipay. The new funding to Paytm would be the largest financing round in India’s technology and internet space this year, well ahead of the $200 million funding raised by online marketplace Snapdeal. While a number of multi-million dollar funding were announced last year by the likes of Flipkart, Snapdeal and Ola, the last few months have been tough for these start-ups as investors have tightened their purse strings.
The sources said a major chunk of the funding could go towards the payments bank operations. Paytm founder Vijay Shekhar Sharma has said the payments bank will become operational later this year. Retail company Future Group recently partnered with Paytm to enable Paytm users to shop for Big Bazaar merchandise on the online marketplace and get it delivered to their homes. The tie-up will make Big Bazaar the anchor store on the Paytm marketplace. Further, customers of Big Bazaar can get a 15 percent cashback on all purchases, both online and offline, using Paytm s wallet facility.