Thursday, April 20, 2017
Japanese Major SoftBank Likely to Invest $1.5 Billion in Paytm
If the discussions materialise, the deal could value the One97 Communications Ltd-owned company at $7-9 billion, the , citing three people aware of the matter.
As per the deal, will not only buy some shares from existing Paytm investor SAIF Partners and founder Vijay Shekhar Sharma but would also be investing money in the company. The payments company may also buy out Snapdeal-owned mobile wallet firm FreeCharge in a “fire sale, though the fundraising is not contingent upon the proposed buyout,” the report added.
With SoftBank on board, could also be seeking a way to balance out the control of China’s Alibaba Group Holding Ltd, currently its largest shareholder. Interestingly, the Japanese company was an early backer of Alibaba and its initial investment of $20 million turned into a stake worth more than $60 billion when Alibaba listed its shares in 2014.
SoftBank is now pushing mergers and acquisitions to consolidate its portfolio. The Japanese major has reportedly been spearheading the talks for a possible merger of Snapdeal with rival Flipkart.