Mobile wallet Paytm raises $1.4B from SoftBank

by Abhinav Mohapatra

One97 the parent company of mobile wallet Paytm has raised $1.4 billion from Japanese internet and telecom giant SoftBank Group. In an official statement, Paytm stated that the investment will help it grow its leadership in the country’s payment ecosystem, expand its user base and build a suite of financial services products for its customers. The company plans to invest INR 10,000 crore (approx $1.6 billion) over the next three to five years towards helping 500 million Indians join the mainstream economy. It also plans to expand its online and offline businesses in the country going forward. The company is poised to launch its Paytm Payments Bank on the 23th of May, after getting a green signal from RBI, which will provide quick and basic banking services.
“In line with the Indian government’s vision to promote digital inclusion, we are committed to transforming the lives of hundreds of millions of Indian consumers and merchants by providing them digital access to a broad array of financial services, including mobile payments,” said Masayoshi Son, Group Chairman and CEO, SoftBank.
According to Paytm, this investment marks the largest round from a single investor in India. SoftBank will join its partner Alibaba, which already holds stakes in Paytm, as a major stakeholder on the board. As per several media reports the entry of SoftBank will help reduce the control of Alibaba which is currently Paytm’s largest shareholder.
“We are at an inflection point in our journey with Paytm. This investment by Softbank and support of the incredible entrepreneur Masa Son is a great endorsement of our team’s execution and vision. We believe we have a great opportunity to bring financial inclusion to half a billion Indians,” said Vijay Shekhar Sharma, Founder and CEO, Paytm.