Paytm’s payments bank gets $32.5mn in fresh funding

Digital payments platform, Paytm that is all set to launch its payments bank service in Uttar Pradesh, this month has got another Rs 218 crore (or $32.5 million) cash infusion from Paytm CEO Vijay Shekhar Sharma, investing a sum of Rs.111 crore and from One97 India Communications, Paytm’s parent company that is investing Rs 107 crore, according to the latest regulatory filings.

With permission from the RBI, Paytm will be combining the wallet business to the newly created payments bank so as to meet the bank’s guidelines.

With the company targeting 100 million users with its new financial services, the new funds would be used for technology and expansion purposes. The development comes on the back of two other payments banks -Airtel Payments Bank and India Post Payments Bank launching their operations.

Meanwhile, Alibaba too is planning to pump in $200 million funding into Paytm’s e-commerce business that could be announced by the end of this month.

The proposed investment will give Paytm a huge war-chest to take on rivals Flipkart and Amazon — who together enjoy nearly 70 percent of the e-commerce marketshare in India — as well as Snapdeal.