Japanese internet and telecom giant Softbank has led one of the largest investment rounds in Indian startup scene by investing $1.4 billion (approx Rs 9,000 Cr) in Paytm. With the funding, Paytm is valued at $7 Billion, earlier the company was valued at $6 billion in March when Paytm’s existing investors Reliance Capital, SVB and SAP ventures sold their stakes of about 4.3% to Alibaba Group & Ant Financial Services Group.
Right after the funding took place, Venture capital firm SAIF Partners, whose also been an early investor in Paytm, is expected to rake in $300-400 million in cash by partially selling its stake in the digital payments and commerce company as part of the company’s latest financing round, people familiar with the development said.
Softbank is expected to buy shares in a secondary transaction about $400 million to gain a full 20% stake in the company, according to a person directly aware of the transaction. In the same month, Paytm employees sold their shares in One97 Communications. About 47 employees sold shares worth about $15.3 Mn (INR 100 Cr) to both internal and external buyers.
Earlier this week, Sixth Sense Ventures founder and CEO Nikhil Vora pocketed about $23.4 Mn by selling his stake in One97 Communications. The stake was sold to Chinese e-commerce giant Alibaba Group Holdings. Vora had invested in the company in 2011. He picked up a 0.35% stake or 1,60,000 shares of One97 Communications. The stake sale valued Paytm at about $6.6 Bn.
SAIF Partners is a venture and growth capital fund invested in helping Asia’s exceptional companies grow from concept to IPO. Venture Capital that does Seed, Early Stage Venture, Later Stage Venture, and Private Equity Investments and provides funding in countries like India, China, Hong Kong, Australia, Japan, South Korea and Taiwan. Read more about Indian Startup Ecosystem.