Indian digital payment platform Paytm has raised $1.4 billion from the Japanese conglomerate SoftBank. The funding has been infused in order to expand the payment bank operations as well as grow its user base and introduce more financial products for the consumer.
Paytm will also start its payment bank business operations from 23rd May and plans to invest ₹10,000 crore over the next three to five years in enabling half a billion Indians to join the mainstream economy.
Commenting on the funding Vijay Shekhar Sharma, Founder and CEO, Paytm said, “We are at an inflection point in our journey with Paytm. This investment by Softbank and support of the incredible entrepreneur Masayoshi 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,”.
Softbank had promised to invest over 10 billion dollars in India. About 2 billion dollars were invested in startups like Snapdeal, Ola, and Housing.com in last few years for which they reported their loss.
By funding Paytm, SoftBank now joins with long-standing partner Alibaba who had been funding company till now.
“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. We are excited to partner with Paytm in this journey and will provide them with all our support,” said Masayoshi Son, Chairman and CEO, SoftBank Group.
Founded in 2010 as an online recharge and bill payment platform, Paytm soon expanded into e-commerce. In January 2014, the company launched its Mobile Wallet service, which has become the India’s biggest digital wallet company with over 220 million users and is accepted by more than 5 million offline merchants across India.
In addition to its mobile wallet and recharge service, the company also witnessed a significant uptake in its movie ticketing and travel booking (rail, bus and flight tickets) businesses.