PE-VC investment in mobile payment firms at 6-yr high; Paytm leads with $1.4 bn

Paytm

Latest News – Private equity (PE) and venture capital (VC) investments in the mobile payment sector touched a six-year peak during the first five months of 2017, with Paytm leading the pack. The surge in investments comes against the backdrop of increasing digital transactions in the country after the government’s demonetisation drive of November last year.

From January to June this year, the sector attracted $1.418 billion in four deals as compared to $15 million in three deals during the previous year, mainly due to SoftBank Corp’s investment in Paytm’s parent company, One97 Communications.

As Paytm leverages the government’s efforts to promote cashless transactions after the Demonetisation drive that started on November 8, 2016, it has attracted one of the largest investment deals in the past six-and-a-half years in the mobile payments space. It raised around $1.4 billion from SoftBank Corp in May this year. The second-largest deal during the year was a $15-million investment into balance management service app True Balance by SoftBank Corp, IMM Investment Corp, Mega Investment, Korea Development Bank, and Capstone Partners, according to data from research firm Venture Intelligence.

Interestingly, the highest fundraising at one go during the period between 2011 and 2016 in the sector was also by Paytm, which raised around $300 million from SAIF, Alibaba, and MediaTek in August 2016. The other top fundraising (Read More)

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