The Competition Commission of India (CCI) on Tuesday approved Softbank’s acquisition of 20 percent stake in Paytm’s parent company One97 Communications.
Paytm has been in discussions with the Japanese conglomerate Softbank to raise over USD 1 billion since earlier this month. Paytm had filed the request with CCI while announcing the deal.
“We are scaling the system so that we are able to handle the load and transaction volume,” Vijay Shekhar Sharma, founder of Paytm, told CNBC-TCV18.
Paytm acquired the CCI’s approval after the company’s revenue crossed Rs 1,000 crore, which is the minimum requirement for any company to seek foreign investment. In May this year, Softbank had committed to fund Paytm with USD 1.4 billion. Paytm can now use these funds for its expansion plans.
The target launch is August 15, 2017. Apart from scaling the system, the tie-up will help overall expansion of the digital wallet company. “Our relation with Softbank will go multi-dimensional. We look at them as core business partners,” Sharma said.
Paytm’s spending has reduced from a year ago period. The e-wallet company plans to spend USD 100 million every year.