Paytm, which was till now valued at $10 billion, has just received a funding of $1 billion or Rs 7100 crore.
This new round of funding has been done at a valuation of $16 billion, which has cemented Paytm’s position as the biggest and most powerful startup in India right now.
Details Of Paytm’s Latest Funding Round
American investors T Rowe Price, Discovery Capital and D1 Capital have invested $400 million in this latest round of funding. Whereas existing investors SoftBank have invested $200 million, and Ant Financial pitched in with $400 million.
Paytm’s last round of funding happened in 2018, when Warren Buffett’s Berkshire Hathaway invested $300 million in Paytm, taking their valuation in the range of $10-12 billion.
Since then, Paytm has cashed out some shares via employee stock options as well. This was Warren Buffet’s first ever investment in India.
Where Will Paytm Use This New Funding?
Rural expansion, and inclusion of more and more merchants into their platform seems to be the most pressing tasks for Paytm right now, and this current round of funding will be utilized for the same.
As per statements issued by Paytm founder Vijay Shekhar Sharma, Paytm will invest Rs 10,000 crore for expanding their rural reach, and taking Paytm app to every nook and corner of the rural India.
As of now, Paytm is present across 2000 towns across 650 districts.
Sharma said, “…This new investment by our current and new investors is a reaffirmation of our commitment to serve Indians with new age financial services.”
As of now, 15 million merchants (shopkeepers, traders, SMEs) are onboard with Paytm, and in the next 3 years, they are aiming to bring in 20 million more merchants.
Paytm Will Enter Insurance Niche
Besides, Paytm founder also made it clear that they will enter into the insurance niche next year, and preparations are already underway to make it a big launch.
Last year, we had reported that Paytm is all set to enter the insurance niche, and launch several fintech products.
In the next three years, Paytm is also planning to launch their own IPO.
We will keep you updated, as more details come in.
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