Paytm has announced today that Mountain Capital will make an investment into Paytm. The deal values Paytm at close to $5Bn.
The fresh capital infusion will allow Paytm, the consumer brand of One97 Communications, to further accelerate and develop a vibrant mobile ecosystem in India encompassing payments, commerce and financial services.
The proceeds of the investment will be used for expansion and scaling up, boosting payments and commerce and building and launching the proposed Paytm Payments Bank.
Mountain Capital Fund, L.P., one of the investment funds of MediaTek Inc., is focusing on high tech and innovative investments. MediaTek Inc. is a pioneering fabless semiconductor company and a market leader in cutting-edge system on chips (SoCs) for mobile devices, home entertainment, connectivity and IoT products.
“India is an important emerging market with immense potential for smartphone devices, mobile payments, commerce, and financial services. MediaTek’s endorsement on Paytm through Mountain Capital further demonstrates its confidence in the proliferation of India’s digital payments and mobile Internet ecosystem. For Paytm, our mission is to bring half a billion Indians to the mainstream economy and we are happy to have a long term partner in the mobile chipset world to join us. India is ripe for its financial services revolution and with the growing penetration of smartphones, we have an opportunity to give a new business model of payment, banking and financial services combined with online commerce.” [Vijay Shekhar]