India-based digital payments company Paytm has raised US$1 billion in fresh funding, as it prepares to expand into the insurance industry.
Existing investors contributed to the latest funding round, including SoftBank’s Vision Fund and Alibaba’s Ant Financial Services, according to a report by Reuters. While Paytm did not disclose the details of the transaction, the report cited a source that said Paytm was able to receive US$1 billion in funding.
Paytm said that it will expand into insurance, as well as other financial services such as lending, stockbroking and investments. It will invest around 1.4 billion over the next three years to bring in more users to its services.
“This new investment by our current and new investors is a reaffirmation of our commitment to serve Indians with new-age financial services,” said Paytm founder and CEO Vijay Shekhar Sharma.
Read more: Softbank to pump up insurance investments
According to the report, SoftBank’s renewed investment in Paytm comes as the Japanese firm’s founder, Masayoshi Son, endeavours to rebuild his and the company’s reputation after a disastrous investment in controversial office-sharing firm WeWork.
SoftBank is also feeling pressure after it reported its first quarterly loss in 14 years, including a US$8.9 billion loss in its Vision Fund arm.
