Thursday, March 28, 2024
Advertisement
  1. You Are At:
  2. News
  3. Business
  4. Paytm or Flipkart? Softbank keeps options open for Snapdeal sale

Paytm or Flipkart? Softbank keeps options open for Snapdeal sale

The Japanese conglomerate is believed to be in discussions with Paytm for a funding of Rs 64,000 crore into the payments platform. The move comes at a time the company is already discussing Snapdeal’s sale to Flipkart

India TV Business Desk India TV Business Desk New Delhi Published on: April 19, 2017 11:50 IST
Paytm in talks with Softbank for raising Rs 64,000 cr
Image Source : PTI Paytm in talks with Softbank for raising Rs 64,000 cr funding

Masayoshi Son-led Softbank and Vijay Shekhar’s fintech company Paytm are believed to be in discussions regarding a possible funding of $1 billion (Rs 64,000 crore) by the Japanese conglomerate into the payments platform. The move indicates that Softbank, which is also leading talks for a possible takeover of e-commerce platform Snapdeal by Flipkart, is keeping its options open.

An all-stock merger of Snapdeal with Paytm is being discussed at the highest level, Business Standard reported citing sources. SoftBank, which is among the oldest investors in Alibaba, is also learnt to be exploring the possibility of taking equity in Paytm for investments of close to $1 billion, it said.

The talks come at a time when SoftBank is working on a sale plan of e-commerce firm Snapdeal and is likely to make an announcement in the next few weeks. SoftBank is the largest shareholder in Snapdeal, which is locked in an intense battle with Amazon India and Flipkart.

Also Read: Has the Snapdeal board snubbed Softbank's proposal for sale to Flipkart?

Sources said Paytm may buy Snapdeal-owned payments firm Freecharge as part of the transaction with SoftBank. The funding will also help Paytm accelerate expansion ahead of the launch of its payments bank service.

The Alibaba-backed company already runs mobile wallet and e-commerce services. Paytm has seen manifold growth in transactions on its platform after the government scrapped high denomination notes in November last year.

SoftBank, which has committed an investment of over USD 10 billion in the Indian market, is also engaged in sale discussion for Snapdeal to rival Flipkart. Paytm, which counts China's Alibaba as a prominent shareholder, was valued at about USD 5 billion last year when it had raised USD 60 million from Mediatek.

Also, Reliance Capital recently sold its 1 per cent stake to Alibaba for an estimated Rs 275 crore.  

Advertisement

Read all the Breaking News Live on indiatvnews.com and Get Latest English News & Updates from Business

Advertisement
Advertisement
Advertisement
Advertisement