PayTM eying another $400 million to build payment bank


PayTM, one of India’s largest eCommerce startups, which got a licence to provide banking services by Reserve Bank of India recently, is in talks with the investors. Months after raising a huge round of $680 million. Close sources pointed out that the company is eying another round of $400 million to focus on the payment bank.

The Alibaba-backed startup has been in news for all reasons lately. There were rumors of some merger possibility between PayTM and Flipkart (India’s biggest eCommerce platform) to compete against the duo of Snapdeal & Freecharge. Another rumors suggested that the talks were only about coming out to a solution of using both platforms together to make use of the huge database.

The amount, which PayTM is eying to raise will be used to expand the payment bank branches across the country. PayTM has always said that the main aim of the company is to reach out to the last mile to provide better banking and payment solutions. Part of the raised amount might even go in discounts and cashbacks to lure the new customers to join the PayTM platform. Recently, the rival freecharge had set a fund of Rs 1000 Crores ($150 Million) for cashbacks for the new Freecharge wallet.

PayTM, with over $700 million in funding from biggies such as Alibaba has emerged as a pretty big thing inside India, with over 100 million customers, PayTM is surely eying to get bigger in the time to come.