By James Mathew
India's digital payment market is projected to reach $1 trillion by 2023, according to a report by India's planning advisory body, NITI Aayog.
Softbank Vision Fund has invested an additional $200 million in Indian digital payments company Paytm, the company has said.
Softbank Vision Fund’s investment is part of a $1 billion raised by Paytm in its latest round of fund raising, valuing the Indian start-up at $16 billion.
US asset manager T Rowe Price, and other existing investors such as Ant Financial and Discovery Capial, are the other funds which have participated in the latest round of fund raising by Paytm.
This is the largest amount raised by an Indian startup this year.
“It’s a $1 billion raise led by T T Rowe Price,” said Vijay Shekhar Sharma, CEO of One97 Communications, Paytm’s parent company.
“SoftBank has pumped in $200 million, while Ant Financial has invested $400 million,” he added.
SoftBank, which first invested in Paytm in 2017, holds about 19 percent stake in the company.
Paytm said the fresh investments will be used for growing the payments and financial services business of the company.
“In its first phase of growth, Paytm pioneered low cost digital payments acceptability in India using its QR-code technology in local shops and retailers,” the company said.
“The company will invest and support millions of rural Indians towards self-sustainability through job creation."
Paytm, though had the first mover advantage in the Indian marke, has been facing intense completion from Google Pay and Walmart Inc.-owned PhonePe Pvt. Ltd.
The digital payment market in India is projected to reach $1 trillion by 2023, according to a report by India’s planning advisory body, NITI Aayog.