Sharma informed that with this one-time investment of $1.4 billion, SoftBank will hold a 20 percent direct stake in Paytm, along with a 12 percent indirect holding through its majority stake in Alibaba, the Chinese internet giant that has 40% stake in One97, Paytm's parent company.
With this one-time investment of Dollars 1.4 billion, SoftBank will hold a 20 percent direct stake in Paytm, along with a 12 percent indirect holding through its majority stake in Alibaba, the Chinese internet giant that has 40 percent stake in One97, Paytm's parent company.
Paytm has announced an investment of U.S. $1.4 billion by the SoftBank Group, the Japanese Internet and telecom major, in One97 Communications Limited, the entity that operates India's largest mobile payments and commerce platform under the Paytm brand.
"SoftBank backing us shows their belief in Paytm and our plans of becoming a full-fledged financial services company".
Paytm, which runs India's biggest digital payments system with more than 220 million users, said it planned to spend 100bil rupees (RM6.49bil) over the next three to five years to expand its services. This happened just months after China's Alibaba invested $177 million in Paytm Mall, Paytm's marketplace business unit.
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The Australian Competition and Consumer Commission (ACCC) would be watching the banks "very, very carefully indeed", he said. Only Australia's five biggest banks will be hit with the new tax which will be on liabilities.
Image: SoftBank chairman and CEO Masayoshi Son (left) with Paytm founder Vijay Shekhar Sharma.
SoftBank is also pushing to engineer a merger between Snapdeal, India's number three e-commerce player and one of the Japanese group's biggest investments in India to date, and market leader Flipkart.
The company further added: "We have been going from strength to strength in our payments division". We will aggressively move in areas such as lending, financial products, among others as we aim to offer financial inclusion to half a billion people.
In addition, Paytm witnessed an uptake in its movie ticketing and travel booking (rail, bus and flight tickets) businesses. He recently set up a new company, Paytm Financial Services for selling financial services products.
Paytm announced in February that it has now has over 200 million users of its mobile wallet, which is a popular payment method in India. Acronym for "Pay Through Mobile", it was launched in August 2010 as an online recharges and bill payments platform and soon expanded into ubiquitous online and offline use-cases. Interestingly, SoftBank was an early investor in Alibaba.