Paytm may become India’s fastest startup to cross 1 billion dollar valuation mark with new fresh round of funding. It is rumored to raise more than 4500 million from Chinese e-commerce giant Alibaba and Singapore-based Temasek Holdings. Talks are almost in final stages and company will announce this by the end of this month.
People involved in the deal confirmed that Paytm will be valued between $1.5 to $1.9 billion after this deal. Investors will gain 25-30% stake for $500 million.
Paytm is the e-commerce company which started its operations as a mobile recharge platform. Its mobile-first strategy is attractive to investors. In past, Tiger Global and Amazon were also interested in Paytm. But we cannot confirm if these companies are also involved in this round of funding. Existing investors SAIF partners will also participate in this round to maintain its 40% equity level.
Paytm confirmed to economics times that the fresh funds will be used in enhancing the technology, and aggregating courier companies to ensure better deliveries countrywide. Company is also planning to hire more people and take more office space in Delhi and Bangalore.
Source: TOI
