Paytm is gearing up to raise $375 million from existing investor, Alibaba Group, as per a report from Live Mint. The online payment processor, owned by One97 Communications Ltd will be valued at $1.83 billion if the deal is through.
Paytm has received a nod from the board to raise the additional funds which is expected to increase Alibaba Group’s stake in the company to 41%. The company is expected to receive the latest funding within a span of six months. AliBaba Group has already invested $200 million into Paytm in two slots of $65 million and $135 million for a stake of 25.88%, according to documents filed with the registrar of companies (RoC). Paytm has also raised INR 1 crore from Ratan Tata’s personal investment firm RNT Associates Pvt. Ltd.
In January this year, it was reported that Paytm is eyeing to raise $575 million from Alibaba. With a valuation of $1.83 billion, Paytm will be among the most valued startups in the Indian e-commerce space, next to online retailers Flipkart and Snapdeal and cab aggregator Ola.