One97 Communications Limited (OCL), the parent company of Paytm, India’s leading payments and financial services provider, revealed plans to invest ₹100 crore in Gujarat International Finance Tec-City (GIFT City). This strategic move aims to establish a global financial ecosystem and contribute to India’s standing on the global innovation map. The announcement was made ahead of the Vibrant Gujarat Global Summit 2024 in Gandhinagar.
Over a phased period, Paytm will channel this investment into GIFT City, seeking necessary approvals as it envisions leveraging the city’s status as an ideal innovation hub for cross-border activities. The primary focus will be on developing an Artificial Intelligence (AI)-driven cross-border remittance and payments technology system, delivering efficient solutions on a global scale.
As a pioneer in real-time payments and settlements within India, Paytm now seeks to extend its success to streamline cross-border remittances, offering faster and more cost-effective solutions through the power of AI. The company’s proven capability to innovate and create user-friendly tech solutions will play a pivotal role in attracting global investors looking to invest in India.
Vijay Shekhar Sharma, the Founder and CEO of Paytm, expressed his enthusiasm for the investment, stating, “GIFT City is set to become a global financial hub, further putting India on the world map for innovation. The strategic investment in GIFT City represents a pivotal step towards building an Artificial Intelligence-driven cross-border remittance and payments technology landscape, presenting global opportunities.”
The innovative landscape envisioned by Paytm is expected to significantly reduce friction in cross-border transactions, making remittances faster, reliable, and more cost-effective on a global scale. GIFT City, already renowned for its financial infrastructure, regulatory framework, and cross-border facilitation, provides an ideal platform for Paytm’s ambitious plans.
In addition to the AI-driven cross-border remittance project, Paytm aims to establish a development center within GIFT City. This center will serve as a technology backbone, housing engineers and professionals dedicated to building a suite of world-class financial products and services. The establishment of this center is expected to create job opportunities and contribute to GIFT City’s vision of becoming a global innovation and financial technology hub.
Vijay Shekhar Sharma emphasized, “We are excited about GIFT City serving as an exemplary innovation hub for cross-border activities, enabling overseas investors the flexibility to maintain foreign currency accounts. Furthermore, we intend to leverage this investment to establish a dedicated development center.”
This strategic move by Paytm aligns with the broader narrative of India’s emergence as a global financial and technological hub. The investment not only signifies Paytm’s commitment to driving innovation but also positions GIFT City as a key player in fostering cross-border financial activities and technological advancements on the international stage. As the company embarks on this journey, it is poised to play a significant role in shaping the future of cross-border transactions and financial technology in India and beyond.
