“India is ripe for its financial services revolution and with the growing penetration of smartphones, we have an opportunity to give a new business model of payment, banking and financial services combined with online commerce," says, Vijay Shekhar Sharma, Founder and CEO, Paytm after announcing that Mountain Capital will be backing the venture.
Yes, you read it right. Paytm, India’s largest mobile payment and commerce platform, announced today that Mountain Capital will make an investment into the company. As per the sources, Paytm has received the commitment of $60 million (Rs 403 crore) from Taiwanese chipmaker MediaTek Inc.’s Mountain Capital fund.
This capital infusion will allow Paytm, the consumer brand of One97 Communications, to further accelerate and develop a vibrant mobile ecosystem in India encompassing payments, commerce and financial services.
The proceeds of the investment will be used for expansion and scaling-up, boosting payments and commerce and building and launching the proposed Paytm Payments Bank.
“India is an important emerging market with immense potential for smartphone devices, mobile payments, commerce, and financial services. MediaTek’s endorsement on Paytm through Mountain Capital further demonstrates its confidence in the proliferation of India’s digital payments and mobile Internet ecosystem. For Paytm, our mission is to bring half a billion Indians to the mainstream economy and we are happy to have a long term partner in the mobile chipset world to join us," said Sharma.
Consumer brand of One97 Communications, Paytm’s investors include Ant Financial (Alipay), Alibaba Group, SAIF Partners, Sapphire Venture and Silicon Valley Bank.
Paytm has an established and strong foothold in the offline payments and commerce space. It has become the most preferred choice of payments with retailers and the mobile wallet users.
The mobile wallet company has powered strong acceptance for digital payments at a host of partner destinations, such as, movie tickets, fuel stations, automobile booking, education institutes, flight and hotels booking, utility bills, Kiran stores and cab fares, among many others.