New Delhi, November 25: In a major development, One97 Communications Ltd, which operates Paytm, has raised $1 billion in a new financing round, dubbed Series G, in an attempt to fight back digital payment giants Google Pay and Walmart's PhonePe. The funds have been raised from new and existing investors, including SoftBank Group and Ant Financial. Paytm Losses Increase by 163% to Rs 4,217 Crore; Parent Company is in Talks to Pick up Stake in Yes Bank.

The recent fundraising has lifted Paytm's valuation to $16 billion. The investment round witnessed the participation of new investor T. Rowe Price Associates, along with Discovery Capital and D1 Capital, who raised $400 million in the Noida-based company. Existing investors SoftBank Vision Fund and Ant Financial contributed $200 million and $400 million respectively.

According to Paytm founder Vijay Shekhar Sharma, the fresh funds will be used for growing the firm's presence among small and medium-sized business. The company will also expand its payments and financial services business. Paytm Payment Bank Turns Profitable Within Second Year of Operations, Sees Net Profit of Rs 20 Crore in FY19.

“In its first phase of growth, Paytm pioneered low cost digital payments acceptability in India using its QR-code technology in local shops and retailers. Paytm, which at present serves merchants in more than 2,000 towns and cities spanning across 650 districts, aims to bring low cost mobile enabled financial services to rural India. The company will invest and support millions of rural Indians towards self-sustainability through job creation," it said.

This development is a result of the newest payments battleground- which is dominated by Google Pay and PhonePe. According to Credit Suisse, the digital payments market in the country will be worth $1 trillion in the next four years.

(The above story first appeared on LatestLY on Nov 25, 2019 04:54 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).