Digital payments company Paytm has raised USD 1 billion in the latest round of fundraising this year. With this, the total amount of funds raised by the company since inception stands at over USD 3.5 billion. The company claims this latest round values it at USD 16 billion. This round of funding was led by US asset manager T Rowe Price along with existing investors in the company like Softbank and Ant Financial.
Paytm had last raised funds in September last year; that was a USD 300 million dollar investment from Warren Buffett's Berkshire Hathaway. CNBC-TV18’s Mugdha Variyar spoke to Paytm’s Deputy CFO Vikas Garg to find out more.
Garg said, “The major application of the funds is going to be on two things. One, definitely at this stage being a market leader in the payments industry, we are going to double down on the payment ecosystem, both on the merchant side and the consumer side to make it more engaging with them. Secondly, we are going to build a financial services ecosystem.”
“We already have a banking license with us. Our bank is almost 3 years old now; we have a payment bank license. So, banking license completely fits into our overall payment ecosystem plan. In terms of other financial services activity, we are definitely talking and working with the regulators and various stakeholders for getting the license,” he added.
On IPO plans, Garg said, “Paytm is a market leader now and we have scaled up so many businesses. So it is a natural progression path for any company to go public. In our journey till now, we have been very fortunate to have investors who are never worried about an exit from our company and that gives us another kind of support system wherein we can go and double down in the market for expanding our reach. Now, at our scale, the management and the board, we are looking very seriously to make our company overall EBITDA positive. So, working from here, we expect 2-3 years of profitability and I think from there on, it is a normal progression towards IPO.”