Business

Paytm's parent One97 Communications must list within 5 years, SoftBank lays down new terms prior to funding, report says

Updated : November 14, 2019 12:01 PM IST

The latest funding round is likely to see US asset manager T Rowe Price invest around close to $200 million in One97, besides infusions from various existing backers.

The group has been making serious efforts to attract funds at a time when Paytm is facing rising challenges including tough competition and mounting losses.

SoftBank will likely have the right to sell its stake to a rival company if the IPO fail to materialize within the stipulated time.

SoftBank’s new round of fund infusion into Paytm’s One97 Communications will come with its own sets of conditions, reported The Economic Times, adding, SoftBank Vision Fund has stipulated that the company should go public within five years.

"SoftBank has finally signed the documents to invest in the new round of funding, but with conditions," a source was quoted as saying in the report. Further, a source told media that SoftBank will have the right to sell its stake to a rival company if the IPO fail to materialise within the stipulated time.

The development, the report said, comes as the latest funding round is likely to see US asset manager T Rowe Price invest around close to $200 million in One97, besides infusions from various existing backers.

The group, the report said, has been making serious efforts to attract funds at a time when Paytm is facing rising challenges including tough competition and mounting losses.

The SoftBank, on the other hand, too has its own share of troubles. The Masayoshi Son-led group has seen many of its investments failing in the past two years leading to large financial loses. Their investments into tech-based startups have particularly come under scrutiny following the botched-up IPO plans of WeWork.

Paytm's parent One97 Communications must list within 5 years, SoftBank lays down new terms prior to funding, report says

You May Also Like

PSU banks onboard 1-crore account holders on digital payment modes in a month

Rephrase.ai raises $1.5 million to build its AI-powered media production platform

CARE Ratings expects nearly 18% cut in domestic gas prices starting Oct 1

Trending on CNBC-TV18

recommended for you