Paytm raises $60 million from MediaTek

The race for the leadership in the digital payments segment in the India is heating up. After Mobikwik raising funds and Flipkart launching PhonePe, One97 that owns Paytm has now raised $60 million (about Rs 400 crore) from Taiwanese chip designer MediaTek.

The development was first reported by PTI.

Interestingly, MediaTek is also an investor in Paytm’s rival, Mobikwik in India. Earlier this year in May, MediaTek had participated in an estimated $50 million fund raising by Mobikwik.

Paytm spokesperson stated that the funds will be used in expanding payments and commerce businesses and for building and launching the payments bank.

It has also earlier been reported that Paytm is eyeing more funding in the region of $300 mn from a number of investors in a fresh round funding.

Sources identify the, as Goldman Sachs as well as existing investors, Alibaba and its payments affiliate Alipay and venture capital firm SAIF Partners.

With this deal, the digital payment services and e-commerce firm valuation is estimated at about $5 billion. Paytm founder Vijay Shekhar Sharma has earlier revealed that its payments bank will become operational later this year.