In one of the largest funding round by a single investor, Japan’s Softbank has committed to fund Paytm with USD 1.4 billion, the Noida-based company said in a statement today. Paytm is now Softbank’s largest investment in India.
Commenting on the development, Paytm’s Vijay Shekhar Sharma said, “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.”
The e-wallet major has been seen as one of the major beneficiaries from PM Narendra Modi’s demonetisation drive, under which the government banned Rs 500 and Rs 1,000 promoted digital transactions in the country.
Softbank has now become the second biggest investor in Paytm, after Alibaba. In turn, Softbank gets a safe investment in Paytm, as the Japanese company has been incurring valuation losses on two of its other investments in India – Snapdeal and Ola. Softbank recently wrote off USD 1.4 billion on Snapdeal and Ola investments for the year ending March 31.