Paytm, A One97 Communications payment portal is a well-known application used by a majority of the Indian population. It has mortgaged all its mutual funds and assets to ICICI Bank so as to borrow INR 1400 Crore to meet the rising working capital needs.
Paytm is one of the most overwhelming players in the online payment industry in India. It has recorded over 221 million transactions alone in January this year. The overwhelming figure clearly states that Paytm is planning for a bigger jump to grab hold the existing market properly.
As per the statistics of 31st March 2018, its current asset worth ranges to INR 7,085.1 Crore. All f its investments and assets have been pledged to ICICI to borrow INR 1400 Crore and utilize the loan for operational capital.
Mint reported that the formal registration has been completed on Wednesday 13th this month. This drastic measure taken by Paytm clearly shows the financial crunch in the market. The brand is facing a crisis to carry on its daily operations.
A reliable source said, “One97 Communications has clear goals. Several attractive deals are on the table and even if there is a difficulty to get an equity buyer due to the cost of stake in a large-scale startup such as One97, the company’s plans should not suffer due to shortage of working capital limits.”
Vijay Shekhar Sharma, the CEO, expressed his confidence that the company will grow its operations by 50% and double the gross merchandise volume to $2 Billion by the end of this fiscal year in March 2019.
Back in January, Paytm acquired NightStay to strengthen and broaden its travel business portfolio. Madhur Deora, the CFO, said, “We want to offer the broadest travel selection on our platform, and look forward to continuing our expansion with the help of our trusted travel partners.”
The company is witnessing a huge boost in its service and visualizing a great future in the foreign markets. The parent company received $356 million investment from Warren Buffet owned Berkshire Hathway Inc. It also received a huge investment from Ant Financial Services, an Alibaba venture.