Paytm May Acquire Freecharge After Raising $1.5 Billion From SoftBank

Must Read

Zomato Sets Eyes On $10.2 Billion Online Grocery Delivery Market in India

The 21-day nationwide lockdown imposed in India due to the Covid-19 outbreak fueled a massive change in...

Billionaire Mark Cuban’s Invaluable Advice for Startups in Crisis!

In an interview with CNBC last week, owner of NBA’s Dallas Mavericks, Mark Cuban, spoke out about...

Over 13.6 Crore Jobs in India Would Be Lost Due to Coronavirus Outbreak!

The 21-day lockdown induced by the deadly outbreak of the Covid-19 has completely dismantled and disrupted the...

After Flipkart’s largest-ever round of funding, other Indian unicorns have apparently set their eyes on raising billions of dollars in their next round of funding. Mobile Wallet platform Paytm, the most aggressive player among all, is reportedly in talks with Japan’s SoftBank to raise anything between $1.2 billion and $1.5 billion. If the deal goes through, SoftBank will become one of the largest shareholders in the Paytm.

The successful round of investment will make Paytm valuation soaring to nearly $7 billion to $9 billion, making it the second largest startup after the poster boy of Indian e-commerce revolution, Flipkart.

Flipkart recently raised $1.4 billion from Microsoft, eBay and Tencent at a valuation of $11.6 billion.

Advertisements

People familiar with the deal have said that paytm has planned to spend a majority of the new investment in buying its mobile wallet rival Freecharge from struggling e-commerce major Snapdeal. This will not only help Paytm to strengthen its market presence in digital wallet space but would also push the digital wallet industry to a consolidation and correction. It’s important to highlight that Softbank is a current investor in Freecharge-owned Snapdeal.

With the infusion of $1.5 billion, SoftBank will become the only investor making the single largest investment in any Indian startup.

The investment will also reduce the controlling power of Alibaba on Paytm, relaxing Indian government’s concern about growing influence of Chinese investment companies in Indian unicorns.

This is not the first time when SoftBank is evaluating Paytm for investment. In 2014, SoftBank was deeply involved in possible investment discussion in Paytm. However, SoftBank saw Snapdeal much more promising bet than Paytm and passed on. Later, in 2015, Paytm raised $1 billion from Alibaba and Ant Financial.

Quite recently, Paytm was valued $6 billion when some of the existing small investors, including Reliance Capital, exited Paytm by selling off their stakes to Alibaba and Any Financial.

Advertisements

The digital wallet business attracted the eyeballs of big fishes of the investment community after the demonetization. The exploded adoption of smartphone and mobile apps fueled the interest further. Government’s push to digital payment has worked well for Paytm.

1 COMMENT

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest News

Facebook Messenger Desktop App: The Rise Of Zoom Has Caught The Attention Of Zuckerberg?

Facebook Messenger Desktop app is making waves, and all because of an unexpected and sudden rise of...

A New Coronavirus Scam Is So Lucrative That People Are Falling Prey To Scammers Easily!

Fraudsters are out once again to steal your money and this time they are banking on a new Coronavirus scam.

What Businesses Need to Know About the Instagram Algorithm in 2020

Every social media platform, whether it’s Facebook or Instagram, is driven by an algorithm that controls the content exposure. This is the...

GRE And TOEFL Exams Now Will Be Undertaken From Home: Will Covid-19 Redefine Education Sector?

The sudden outbreak of the deadly pandemic Covid-19 has forced the existing education systems around the world to now rely on digital...

Over 13.6 Crore Jobs in India Would Be Lost Due to Coronavirus Outbreak!

The 21-day lockdown induced by the deadly outbreak of the Covid-19 has completely dismantled and disrupted the entire job market in India....

India Is Losing $4.6 Billion Due To Lockdown Every Day [REPORT]

The amount of havoc the Covid-19 outbreak and all the measures that have been imposed in place to curb it wreaked on...

In-Depth: Dprime

YouTube Should Have Bid Adieu To Dislike Button Much Earlier?

Online video sharing platform YouTube can be a ruthless place for content creators targeted by 'dislike mobs'. And the site owners totally understand that...

Facebook Has Pulled Off A Masterstroke By Integrating Its ‘Family Of Apps’?

It’s indeed hard to believe that ONE man sitting at Menlo Park, oversees how nearly a third of the world’s population interacts with each...

Facebook’s Crunch Conquest: By Relying Largely On The US Market, Is Facebook Running a Risk?

Two billion! That's Facebook, Inc. (NASDAQ: FB) for you - Right when you thought that this social-media giant has already connected the entire world, it's...

More Articles Like This