Japanese investment giant SoftBank plans to invest as much as $1.5bn into Indian payments firm Paytm. The investment will see Paytm valued at as much as $9m.
Part-owned by Chinese e-commerce giant Alibaba, Paytm recently split out Paytm e-commerce and Paytm Payments Bank.
While Alibaba made a fresh $200m investment into the firm’s e-commerce business, SoftBank will pump cash into the payments arm.
The deal has reportedly been in the works for three months and will see SoftBank buying shares from investor SAIF Partners and founder Vijay Shekhar Sharma as well as investing.
Adding SoftBank as a shareholder is also expected to diffuse tension around Chinese-owned Alibaba holding so much control over the Indian firm.
The deal comes at a time when SoftBank is attempting to sell Snapdeal’s mobile wallet subsidiary FreeCharge at a reported discount of more than 50%.
SoftBank insists it will maintain its commitment to investment $10bn in Indian tech companies over the next decade.
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