Paytm raising up to $2 billion; valuation may soar to $18 billion

MUMBAI | BENGALURU: Online payments services company Paytm is in the midst of raising $1.5-2 billion from existing investors SoftBank Vision Fund and Alibaba’s financial affiliate Ant Financial, said people with knowledge of the development.

The latest financing round at One97 Communications, the parent of Paytm, is likely to peg the company’s valuation at $16-18 billion, these people said, adding that new investors may join the current round.

Paytm is likely to see a significant spike in the $10 billion valuation ascribed to it when Warren Buffett-led Berkshire Hathaway invested $300 million last year. The company was valued at $16 billion in a secondary round a few months ago, said people aware of the matter.

A secondary sale is when an existing investor sells shares to a new one and the money does not come into the company’s coffers.