Indian digital payments firm Paytm is reportedly in talks with Japan’s SoftBank in the hopes of securing $1.2 to $1.5 billion in cash. If the deal goes through, SoftBank would be one of the Paytm's biggest shareholders.
The funding would swell the Indian firm’s total valuation $2 billion from $7 billion to $9 billion. SoftBank would likely purchase some of their share from existing investors SAIF Partners and founder Vijay Shekhar Sharma besides investing money in the company. The news comes along with reports that SoftBank is looking to unload its stake in India’s Snapdeal in favor of investing in Flipkart — India’s largest homegrown eCommerce player.
Paytm may also buy Snapdeal-owned payments rival FreeCharge as part of the deal, the report said.
Digital payments have become big business in India since the government decided late last year to ban high value bank notes.