One97 Communications, which runs the mobile wallet major and e-commerce platform Paytm, is in advanced talks with three firms to raise fresh funding of about Rs 2,000 crore.
According to an Economic Times report, the company is in talks with Taiwanese semiconductor maker MediaTek, Goldman Sachs, Singapore's Temasek and other investors. The move is expected to increase Paytm’s valuation to about Rs 33,000 crore.
Other than the three market giants, Paytm’s existing investors Alibaba and SAIF Partners will also be participating in fund raising.
“The new round (of funding) is expected to value the company at close to $5 billion (about Rs 33,000 crore),” ET quoted a close aide to the company as saying.
The fund raised will be deployed across all of Paytm’s businesses, including digital payments, online marketplace and the upcoming payments bank, sources said.
Meanwhile, Paytm E-Commerce Pvt Ltd, set up earlier this month, is likely to become the launchpad for Alibaba’s online operations as its business-to-consumer site Tmall is expected to make debut in India in six months.
Founder Vijay Shekhar Sharma, who holds the payments bank licence in his personal capacity, has established Paytm Payment Bank to house the financial services business.
Though there was no response from MediaTek, Goldman Sachs and Temasek, if the deal is successful, it will be the largest financing roud in India’s technology and internet field this year.
The deal is expected to surpass the Rs 1300-crore fund raised by Snapdeal and Rs 1000 crore raised by grocery retailer Bigbasket.