Mobile payment and ecommerce platform Paytm, is in advanced talks to raise fresh funding of about Rs 2,000 crore ($300 million) from Taiwanese semiconductor maker MediaTek, Goldman Sachs, Singapore's Temasek and other investors, as reported by ET. Existing investors, which include Alibaba and its payments affiliate Alipay besides venture capital firm SAIF Partners, will also be participating.
According to multiple source, the new round is expected to value the company at close to $5 billion. The money will be deployed across all of Paytm's businesses -digital payments, online marketplace and the upcoming payments bank.
Paytm was valued at $2.3 billion in the last round of capital infusion in June.
Paytm rivals in payments include Mobikwik, which recently raised $40 million from South Africa's Net1, and Snapdeal-owned Freecharge, which has been looking to raise a $150-300 million round since October 2015. Flipkart is also expected to launch its mobile payments business under PhonePe next week, and plans to invest $100 million initially.
Over the last 12 months, Paytm has been pushing its offline to online business aggressively, entering areas like movie ticketing, petrol pump payments, taxi payments and education fees among others. This is expected to be key drivers in monthly gross merchandise value (GMV) increasing to $500 million by December from $300 million in July, Sharma told ET in an interview earlier this month. Sharma had also said that Paytm is running at a 1% operating loss, which includes online marketing, payment gateway and cashback costs.
As of now, Paytm's Founder Vijay Shekhar Sharma holds 21.33% stake in One97 communications (Paytm's parent company) and its earliest venture capital investor SAIF Partners has 30.81%. Alibaba holds 8.53% while Alipay is the single largest shareholder with a 32.41% holding.
According to multiple source, the new round is expected to value the company at close to $5 billion. The money will be deployed across all of Paytm's businesses -digital payments, online marketplace and the upcoming payments bank.
Paytm was valued at $2.3 billion in the last round of capital infusion in June.
Paytm rivals in payments include Mobikwik, which recently raised $40 million from South Africa's Net1, and Snapdeal-owned Freecharge, which has been looking to raise a $150-300 million round since October 2015. Flipkart is also expected to launch its mobile payments business under PhonePe next week, and plans to invest $100 million initially.
Over the last 12 months, Paytm has been pushing its offline to online business aggressively, entering areas like movie ticketing, petrol pump payments, taxi payments and education fees among others. This is expected to be key drivers in monthly gross merchandise value (GMV) increasing to $500 million by December from $300 million in July, Sharma told ET in an interview earlier this month. Sharma had also said that Paytm is running at a 1% operating loss, which includes online marketing, payment gateway and cashback costs.
As of now, Paytm's Founder Vijay Shekhar Sharma holds 21.33% stake in One97 communications (Paytm's parent company) and its earliest venture capital investor SAIF Partners has 30.81%. Alibaba holds 8.53% while Alipay is the single largest shareholder with a 32.41% holding.
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