After $1 billion funding round, Paytm could be in talks to raise another $1 billion
today Nov 29, 2019
Digital payments and e-commerce business Paytm could already be planning to raise a further $1 billion (Rs 6,652.75 crore) from a group of investors, according to reports. The news follows the company's announcement of a $1 billion deal led by US-based asset management firm T Rowe Price.
Paytm aims to launch a new funding round, sources told the Press Trust of India. The business is currently in talks with multiple potential investors including former UK Prime Minister David Cameron, the sources said, adding that talks may be finalised in several weeks.
While Paytm has not yet commented on the talks, sources said that the funds would be used to ameliorate the business’ technology and expand its merchant services across India. Paytm’s founder and CEO Vijay Shekhar Sharma posted a photo of him and Cameron in Singapore on Twitter on November 26 and described him as “inspiring”.
The post followed Paytm’s announcement on November 25 that it planned to invest $1.4 billion on expanding its financial services over the coming three years. Its recent funding round was led by T Rowe Price and also included input from existing investors Softbank, Alibaba, and Discovery Capital.
Paytm is owned by One97 Communications which saw losses of Rs 3,959.6 crore in the 2019 financial year, more than double its losses in the previous financial year. The business has stated that it could pursue a public listing after 2021.
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