India: Paytm’s Vijay Shekhar Sharma may sell 1% in One97 Comm to fund payments bank ops

Visual from Paytm website

One97 Communications Ltd founder Vijay Shekhar Sharma who runs digital wallet firm Paytmis looking to raise funds to start his payment bank operations, according to an Economic Times article. The funding is expected to close in next couple of months.

Sharma recently got payment bank licence in August from Reserve Bank of India along with other 10 applicants like Airtel M Commerce Services, Reliance Industries, Vodafone m-pesa, Tech Mahindra etc.

One97 plans to invest between $25-$50 million into the bank until the operations become profitable, Sharma said in the ET article.

Sharma will own 51 per cent stake in the payment bank while the remaining 49 per cent can be held by corporate entities, as per the central bank mandate.

“We are looking at a combination of debt and equity and will dilute up to 1 per cent stake in our company to fund this portion in the bank,” Sharma further said.

He is also looking to hire 3,000 people for its payment banking firm, named Paytm Payment Bank Ltd, and plans to start operations in the beginning of next financial year.

Paytm which claims to have 10.4 crore users currently, is backed by Alibaba Group, SAIF Partners, SAP Ventures, Reliance Capital, Silicon Valley Bank and others. Sharma holds around 21 per cent stake after the latest funding round in September 2015 and Alibaba has become the largest investor post that.

Electronics payments company and marketplace Paytm is also splitting its digital wallet and e-commerce business into separate apps, and will focus on shopping with the current app.

Also read: India: Paytm invests $10m in autorickshaw-hailing app Jugnoo
India: Paytm launches QR code payment option for wallet app
India: Paytm set to roll out its hyperlocal business

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.