Business

SoftBank considering $1.5bn investment in Paytm?

19 Apr 2017 | By Gogona Saikia
Paytm: Becoming a giant in e-commerce

Paytm is reportedly in talks with Japan's SoftBank for a deal that could bring in $1.2-1.5bn capital; it could take its valuation to $7-9bn from $6bn in March.

Sources say SoftBank will buy shares from founder Vijay Shekhar and existing investor SAIF Partners, as well as invest in the company.

Paytm is also considering buying FreeCharge of Snapdeal, where SoftBank is the largest shareholder.

In context: Paytm: Becoming a giant in e-commerce

IntroductionFrom mobile recharging to online marketplace

E-commerce company Paytm began its functions in 2010, initially focusing on DTH and mobile recharging.

Co-owned by One97 Communications, the company is headquartered in Noida.

Paytm gradually began providing recharges and bill payment of various portals including power bills, fuel bills, as well as telephone bills.

In 2014, Paytm entered the e-commerce market offering products and facilities competing with Amazon, Flipkart and the likes.

17 Sep 2014Paytm launches its Paytm Wallet

Paytm introduced the Paytm Wallet with online merchant sites such as MakeMyTrip, Homeshop18, BookMyShow and Naaptol etc.

The wallet facilitated online purchases for Paytm users.

Those using the Paytm wallet could transfer a maximum of Rs.5,000 every day and Rs.25,000 each month.

The smallest amount per transaction could be Rs.1000 and the sender should have minimum Rs.2,000 in credit in the wallet.

13 Mar 2015Ratan Tata puts his money on Paytm

Ratan Tata put an undisclosed amount in Paytm, India's largest mobile e-commerce company marking this as Tata's 5th personal investment into the Indian e-commerce space.

He was to take on the role of Paytm's adviser.

Vijay Shekhar Sharma (founder Paytm) said: "I'm happy that someone like him (Tata) has put his faith and trust in our values and mission. There is no better adviser."

A favourite with internet companies

Paytm which is an acronym for "Pay through Mobile" is the preferred mode of payment across leading consumer internet companies like BookMyShow, Uber, MakeMyTrip and Tolexo.

30 Sep 2015Alibaba puts its weight behind Paytm

China's Alibaba Group and affiliate Ant Financial by investing almost $680 million (its second-round in Paytm) became the largest shareholders of One97 Communications.

With this, Alibaba's total investment in Paytm comes up to $900 million, making it reach the valuation of $3.4 billion.

Previously, on 5 February 2015, Alibaba had entered the Indian e-commerce market by acquiring 25% stake in One97 Communications.

03 Feb 2017Alibaba leading investments in Paytm

Paytm is in the process of raising $180-200 million in funding rounds led by Chinese e-commerce giant Alibaba. The funding will raise Paytm's valuation to $1 billion.

After this round, Alibaba and its affiliate Ant Financial will see their shares in Paytm rise to over 50%.

The funding shows that Paytm remains the vehicle for Alibaba's entry in Indian e-commerce.

Transactions worth Rs. 5,000 crore clocked in January

Founder of Paytm, Vijay Shekhar Sharma on Wednesday said that in January, with demonetization being the catalyst, Paytm clocked Rs. 5,000 crore worth of transactions. "That's 200 million transactions in volume terms," he said.

03 Mar 2017Paytm raises $200 million from Alibaba

Paytm has raised $200 million in a round of funding led by Alibaba Singapore E-Commerce Pvt. Ltd and SAIF Partners. Alibaba is reportedly investing $177 million while SAIF partners has agreed to invest $23 million.

Analysts say after this round, Paytm's valuation will be set at $573 million.

The funding marks Alibaba's formal entry into India's e-commerce segment.

19 Apr 2017SoftBank considering $1.5bn investment in Paytm?