Mobile e-commerce company Paytm is reportedly looking at raising more than $500 million (Rs 3,100 crore approximately) from giants like Chinese e-commerce counterpart Alibaba and Singapore based-Temasek Holdings. This investment will result in the two new investors together holding at least 25-30 percent stake in the company, at a valuation of between $1.5 – 1.9 billion. 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
For making room for these new investors, Chairman and founder of One97 Communications Vijay Shekhar Sharma, is going to dilute his shares for the purpose. Citing anonymous sources, Economic Times reports that the talks of investment are at an advanced stage. The announcement will be made by the end of January. Also Read - 5 apps helping people get through the COVID-19 second wave: Twitter, CoWIN, Aarogya Setu
Founded in 2011, with this investment, Paytm will become India’s fastest startup to reach the $1 billion mark. Existing investor SAIF Partners will also participate in this funding round, to keep its stake at 40 percent. The report also states that Amazon and New York-based Tiger Global also showed interest in investing in Paytm. However, there is no confirmation on whether they would participate in this round.
One of the biggest attraction towards Paytm, is that they were the first in line to go mobile first, making them a lucrative investment. “Other players are pushing their mobile play only in the last six months,” Jayanth Kolla, co-founder and partner at telecom research firm Convergence Catalyst, told the publication.
Recently, Paytm had announced its plans to foray into international markets, with pilot countries being Singapore and other South East Asian markets. It appointed crowd-funding website Milaap s founder Sourabh Sharma to establish its presence in these geographies.