Paytm, a digital transaction platform, is reportedly, eyeing to raise a fresh funding round worth $2 billion, reported Inc42, citing a report by ET.
An ET report said that Paytm is in talks with US-based asset manager T Rowe Price will add up to $150 Mn-$200 Mn funding with Alibaba also joining the round, while another report from Bloomberg adds that existing investors SoftBank and Ant Financial are also expected to participate in the round. It adds that the company would be valued at $16 billion post this funding round.
Recently, Paytm announced that it has achieved profitability at the contribution level.
For details: Paytm achieves profitability at contribution level with $100 billion GTV
“I’d prefer to see a 5% reduction in margins right now, maybe 10% incremental, so maybe two years. I’m talking free cash, not profitability. I make money, but I’m looking to make free cash, and then I’ll go (for listing). When I’m comfortable issuing bonds that I can sell in five years, then I’ll go (for listing),” Vijay Shekhar Sharma, founder of Paytm, explained.
Based out of Noida, Paytm was founded in 2010 by Vijay Shekhar Sharma with an aim to bring an ease in the digital payments ecosystem across India.
The company had recently said that it has allocated INR 750 Cr to expand its monthly active users. The platform planned on targeting 250 Mn new customers, and onboard new merchants in Tier 2 and Tier 3 cities and towns.
Sharma also had recently said that the company will start preparations for an initial public offering (IPO) within two years. Paytm chief said he wants the firm to generate more cash before entering the public market.
In the growing line of Paytm, other emerging startups under the similar roof include Fircent, LenDenClub, IndiaMoneyMart, Monexo, LoanBaba, CapZest, and i2iFunding.