Paytm okays pledge on current assets for ₹1,400 crore loan from ICICI Bank

Mumbai: Vijay Shekhar Sharma’s One97 Communications Ltd, the parent of fintech startup Paytm, has pledged all its current assets and mutual fund investments to be able to borrow ₹1,400 crore for working capital needs from ICICI Bank Ltd.

On 18 January, Paytm and ICICI Bank Ltd entered into an agreement under which One97 Communications’ entire current assets worth ₹7,085.1 crore as on 31 March 2018 was hypothecated by the bank to boost the startup’s borrowing capacity. Until now, Paytm could borrow up to ₹400 crore from the bank for working capital.

The higher borrowing limit helps Paytm secure capital for everyday operations amid tight liquidity conditions in the market and banks’ unwillingness to lend to startups and financial services companies.