SoftBank Group, Ant Financial likely to invest $2 billion in Paytm

Fintech major Paytm is close to scoring $2 billion of new financing from investors, including Jack Ma’s Ant Financial and Japan’s SoftBank Group Corp, to fend off an influx of new rivals, a person familiar with the matter said.

The funding will be split evenly between equity and debt and values the country’s top online financial services firm at $16 billion, the person said, asking not to be identified talking about a private deal. The talks are in their final stages but the terms could still change, the person added.

If a deal is finalised, Paytm could outstrip fellow high-profile Asian start-ups such as Grab and Gojek in valuation.

Billionaire Paytm founder Vijay Shekhar Sharma is raising capital to protect the start-up’s share of a potentially $1 trillion Indian payments market from new entrants, including Facebook, Alphabet’s Google and Walmart-owned Flipkart’s PhonePe.