Paytm loan to founder likely for insurance venture

IPO-bound One97 Communications Ltd, parent company of payments firm Paytm, will seek shareholders’ nod later this month to extend a loan up to Rs 743 crore to two holding companies owned by founder and CEO Vijay Shekhar Sharma. As per sources, the amount raised is likely to be used for investment in Paytm’s insurance business.

According to a notice of the company’s annual general meeting to be held on June 30, in lieu of the investment, One97 Communications will be issued optionally convertible debentures by VSS Holdings Pvt Ltd worth up to Rs 491.93 crore, and inter-corporate deposits (ICDs) worth up to Rs 250.79 crore by VSS Investco Pvt Ltd.