Paytm receives $1.4bn cash infusion from Japanese SoftBank

Paytm has raised $1.4bn from Japanese internet and telecom conglomerate SoftBank in the latest round of funding.

Paytm receives $1.4bn cash infusion from Japanese SoftBank

SoftBank is expected to purchase nearly $400m worth of shares from Paytm’s early investor SAIF Partners in a secondary transaction. The bank will also purchase a minority share from founder Vijay Shekhar Sharma.

With this investment, SoftBank will own nearly a fifth of the mobile payment company, which is estimated to be worth $7bn.

SoftBank chairman Masayoshi Son said: “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.”

The company is slated to launch its payment bank operation on 23 May. It received regulatory approval from the Reserve Bank of India (RBI) to set up the bank in January 2017.

Paytm received first round of funding from Chinese e-commerce giant Alibaba and its finance arm Ant Financial Services in 2015.