Published
Jul 19, 2017
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CCI gives nod to Softbank's billion-dollar investment in Paytm's parent firm

Published
Jul 19, 2017

India’s Competition regulator, The Competition Commission of India (CCI) has approved SoftBank Group Corp’s acquisition of 20 per cent stake for $1.4 billion in One97 Communications, the parent of India’s leading digital payments company Paytm.


CCI gives nod to Softbank's billion-dollar investment in Paytm's parent firm - Image: Paytm - Twitter


 
“CCI India approves acquisition of 20 percent stake in One97 Communications Limited by SoftBank Group Corp”, CCI stated on its official twitter handle.

The approval from India’s fair competition government body makes the Japanese firm Softbank the biggest stakeholder in One97 Communications. Softbank will also get a comfy seat on the Paytm board.

In May, Paytm had raised around Rs 9000 crore ($1.4 billion) from Softbank with an aim to expand its user base in India and bring financial inclusion to half a billion Indians.
 
"In line with the Indian government's vision to promote digital inclusion, we are committed to transforming the lives of hundreds of millions of Indian consumers and merchants by providing them digital access to a broad array of financial services, including mobile payments. We are excited to partner with Paytm in this journey and will provide them with all our support," Masayoshi Son, Chairman & CEO, SoftBank Group Corp had said in a statement in May.
 
After incurring losses through e-commerce firm Snapdeal, Softbank is now looking to make profits from India’s ever growing digital market which received a major boost after demonetisation. The Government of India is also promoting cashless transactions in the country which will further drive growth of digital companies.

Softbank has valued One97 Communications, the parent company of both Paytm Payments Bank and Paytm Mall, at $9 billion.

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