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Post Flipkart, SoftBank to buy a stake in Paytm

Apr 19, 2017, 12:07 IST
SoftBank Corp, the Japan-based multinational internet and telecommunication conglomerate, is planning a huge investment in One97 Communications, the parent company of digital payment giant Paytm. If the deal goes through, the Noida-based company would be valued at over $7 billion.
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The deal would also place Softbank in a crucial position in two of the country's largest digital commerce businesses having 20% stake in One97; the second one would be the online marketplace Flipkart, in which it set to pick up stakes as well.

Also read: Paytm, Freecharge, BHIM, etc have serious privacy concerns. Here are the details

As per people in the know, One97 is seeking a higher valuation of up to $8 billion, and is eyeing a proposed investment of between $1.4 billion and $1.9 billion.

In other news, the Masayoshi Son-led company is also considering selling its portfolio company Snapdeal to arch rival and market leader Flipkart.
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Also read: This is what will happen if Snapdeal gets acquired by Flipkart

For the Paytm deal, Softbank is also exploring the sale of Snapdeal’s digital payment arm FreeCharge.

Paytm is a leading company in digital payments in India, claiming over 8 million transactions daily. It has tie-ups with several other internet companies like Uber and Swiggy.
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