India's payment giant Paytm has announced that it has secured a fresh $1 billion financing led by US-based asset manager T. Rowe Price with existing investors Ant Financials (contributed $400 million), SoftBank Vision Fund (contributed $200 million), and Discovery Capital also participating in the round. The current round, Series G now values the firm about $16 billion which is higher than the other startups in the country. The valuation of the firm is higher than high-profile Asian startups such as Grab and Gojek.
Founder Vijay Shekhar Sharma said that the fresh funding will help the firm grow its payments and financial services business. The platform has planned to infuse ₹10,000 crores over the next three years in order to bring financial inclusion to more under-served users across the country.
The firm through a statement said that “In its first phase of growth, Paytm pioneered low-cost digital payments acceptability in India using its QR-code technology in local shops and retailers. Paytm, which at present serves merchants in more than 2,000 towns and cities spanning across 650 districts, aims to bring low cost mobile-enabled financial services to rural India. The company will invest and support millions of rural Indians towards self-sustainability through job creation.”
The firm competes with the likes of Google Pay and PhonePe. Apart from just being the payment app, the firm has been venturing in multiple segments like share market, mutual funds, health insurance solutions. With fresh capital infusion, it will be interesting to see how the firm utilizes it and challenges its rivals.
Image Courtesy :TheIndianExpress