Paytm parent One97 says MediaTek to invest $60 million1 min read . Updated: 30 Aug 2016, 11:09 PM IST
A Paytm spokesperson says the funds will be used for expanding payments and commerce businesses, and for building and launching its payments bank
New Delhi: Taiwanese chip designer MediaTek Inc. is investing $60 million (about ₹ 400 crore) in One97 Communications, which runs Paytm.
The transaction values the digital payment services and e-commerce firm at about $5 billion. When contacted, a Paytm spokesperson confirmed the development. The funds will be used for expanding payments and commerce businesses and for building and launching the payments bank, she added.
Paytm founder Vijay Shekhar Sharma had earlier said its payments bank will become operational later this year. Interestingly, Mediatek is also an investor in Paytm’s rival, Mobikwik in India. In May this year, Mediatek had participated in an estimated $50 million fund raising by Mobikwik.
Alibaba-backed Paytm is looking at raising about $300 million (over ₹ 2,000 crore) in fresh funding. While a number of multi-million dollar fundings were announced last year by the likes of Flipkart, Snapdeal and Ola, the last few months have been tough for start-ups as investors have tightened their purse strings.
According to people familiar with the matter, Paytm is looking at more funding in coming from a clutch of investors, including Goldman Sachs as well as existing investors, Alibaba and its payments affiliate Alipay and venture capital firm SAIF Partners.