SoftBank is reportedly in talks to invest $1.2-1.5 billion in Paytm

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As per reports SoftBank is reportedly in talks to invest $1.2-1.5 billion in Vijay Shekhar Sharma’s Paytm. The deal could be valued at $7-9 billion.

As per this deal SoftBank will not only buy some shares from existing Paytm investor SAIF Partners and founder Vijay Shekhar Sharma but would also be investing money in the company. The payments company may also buy out Snapdeal-owned mobile wallet firm FreeCharge in a “fire sale, though the fundraising is not contingent upon the proposed buyout,” the report added.

China’s Alibaba Group Holding Ltd which is currently its largest shareholder and with SoftBank on board, Paytm could also be seeking a way to balance out the control. SoftBank Interestingly was an early backer of Alibaba and its initial investment of $20 million turned into a stake worth more than $60 billion when Alibaba listed its shares in 2014.

SoftBank has been re-strategizing its plans in India after its investments in the county failed to yield good returns. As of now they have invested over $3 billion in India and they are now now pushing mergers and acquisitions to consolidate its portfolio. The Japanese major has reportedly been spearheading the talks for a possible merger of Snapdeal with rival Flipkart.

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Madhurima Goyal, From ITvoir News Desk

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