Paytm Receives A Major Investment Of $60 Million.

Paytm Receives A Major Investment Of $60 Million.

Paytm will reportedly be receiving an amount of $60 million (approx Rs 400 crore) as investment from Mountain Capital, one of MediaTek’s investment funds. MediaTek Inc. is a Taiwan-based semiconductor company which provides a system on chips (SoCs) for mobile devices, home entertainment, connectivity, and IoT products.

According to The Economic Times, the valuation of Paytm has reached about $5 billion.

Till date Paytm has raised more than $728 million. More than 40% of the stake is held by Noida-based company, Alibaba which is the biggest stakeholder in the parent company One97 Communications. The other major investors include ANT Financial, SAIF Partners, and Intel Capital.

Now with the inflow of fresh capital, Vijay Shekhar Sharma founder and owner of Paytm said that the company will not only be able to enhance payments, commerce, and financial services but also be used for expansion and growth thus boosting payments and commerce. the investment would also help in building and launching the proposed 'Paytm Payments Bank'.

Commenting on the funding, Vijay Shekhar Sharma said, “India is an important emerging market with immense potential for smartphone devices, mobile payments, commerce, and financial services. MediaTek’s endorsement on Paytm through Mountain Capital further demonstrates its confidence in the proliferation of India’s digital payments and mobile internet ecosystem. For Paytm, our mission is to bring half a billion Indians to the mainstream economy and we are happy to have a long-term partner in the mobile chipset world to join us. India is ripe for its financial services revolution and with the growing penetration of smartphones, we have an opportunity to give a new business model of payment, banking, and financial services combined with online commerce."

In February this year,there were reports that Paytm was looking for investors to raise $400 million by June 2016 to launch Paytm’s new payments business namely 'Paytm Payments Bank.' however this was not confirmed by the e-commerce marketing company.

Recently, reports have surfaced that the company had been split into two — Paytm E-commerce Services and Paytm Payments Bank. But, Vijay Shekhar Sharma would be the director of both the companies. This was apparently done so that Paytm’s marketplace could be merged with Alibaba’s who is planning to make an entry into the Indian market soon.

Earlier too, the company had hinted that it would join hands with sellers from China and Southeast Asia on its platform, indirectly giving hints that it plans to merge its e-commerce platform with Alibaba’s.

Paytm has a tough competition from other e-commerce giants like Snapdeal. In February this year, Snapdeal owned FreeCharge claimed that they have raised close to a million daily transactions.

As per a study by Nielsen in April this year, FreeCharge’s market share jumped from 17% to 30% in last October. The same study reported Paytm's share too has jumped from 35% to 40% in the same period.

Now, with the investment received by Paytm, the company can take the competition even higher than before and scale new heights.

Paytm MediaTek Inc Mountain Capital Vijay Shekhar Sharma Paytm Payments Bank Paytm E-commerce Services Snapdeal FreeCharge Alibaba