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Nov. 24, 2019, 10:50 p.m. EST

SoftBank part of $1 billion investment in India mobile-payments startup Paytm

Company valued at $16 billion, making it one of Asia’s most valuable startups

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By Newley Purnell


AFP/Getty Images
Softbank group CEO Masayoshi Son.

NEW DELHI — The parent company of popular Indian mobile-payments startup Paytm said it has secured $1 billion in fresh funds from Japan’s SoftBank Group Corp. and China’s Ant Financial Services Group, giving it more firepower in a fast-growing but crowded market.

The investment values the parent company, One97 Communications Ltd., at $16 billion, according to a person familiar with the matter, making it one of Asia’s most valuable startups. The Noida, India-based company makes a smartphone app that allows users to pay for goods and services such as groceries, auto rickshaw rides, movie tickets and electricity bills. It also has an e-commerce platform and offers financial products such as mutual funds and savings accounts.

The investment is a “reaffirmation of our commitment” to provide “new age financial services,” founder and Chief Executive Vijay Shekhar Sharma said in a statement Monday in India.

SoftBank /zigman2/quotes/207303954/delayed JP:9984 +2.63%   and Ant Financial, an affiliate of Chinese tech giant Alibaba Group Holding Ltd. /zigman2/quotes/201948298/composite BABA +3.54%  , are existing investors, while new investors such as Baltimore-based investment-management firm T. Rowe Price Associates Inc. /zigman2/quotes/203200152/composite TROW +0.18%   participated in the round, according to Paytm. The company didn’t provide a breakdown for the $1 billion investment, and the amount received from T. Rowe Price wasn’t disclosed.

An expanded version of this report appears on WSJ.com.

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/zigman2/quotes/207303954/delayed
JP : Japan: Tokyo
¥ 5,778.00
+148.00 +2.63%
Volume: 23.89M
July 3, 2020 3:00p
P/E Ratio
38.77
Dividend Yield
0.76%
Market Cap
¥11642.82 billion
Rev. per Employee
¥126.96M
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/zigman2/quotes/201948298/composite
US : U.S.: NYSE
$ 223.60
+7.65 +3.54%
Volume: 18.13M
July 2, 2020 4:00p
P/E Ratio
27.79
Dividend Yield
N/A
Market Cap
$593.71 billion
Rev. per Employee
$781,259
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/zigman2/quotes/203200152/composite
US : U.S.: Nasdaq
$ 122.73
+0.22 +0.18%
Volume: 1.07M
July 2, 2020 4:00p
P/E Ratio
15.29
Dividend Yield
2.93%
Market Cap
$27.93 billion
Rev. per Employee
$765,110
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