Paytm Payments bank has received yet another cash infusion from the parent company. Paytm’s parent company One97 Communications and its founder Vijay Shekhar Sharma have together invested $18.84 Mn (INR 122 Cr) in Paytm Payments Bank. This takes their total infusion in the payments bank to $61.78 Mn (INR 400 Cr).
As per ROC filings accessed by ET, Vijay Shekhar Sharma has invested $9.57 Mn (INR 62 Cr), while the rest was put in by One97 Communications and One97 Communications India. Sharma and One97 Communications had initially invested about $33.98 Mn(INR 220 Cr) in the bank, with Sharma owning the majority stake in the payments bank.
The fund infusion follows the September cash raise wherein the Payments Bank had reportedly secured $9.3 Mn (INR 60 Cr) from Sharma and other existing investors. The development came at a time when the firm was gearing up to launch its own debit card.
In that round, Sharma had infused $4.6 Mn (INR 30 Cr) in the bank, while One97 Communications has contributed around $3.5 Mn (INR 23 Cr). According to the company’s RoC filings, the remaining $1.09 Mn (INR 7 Cr) has come from One97 Communications India, a wholly-owned subsidiary of One97.
Paytm Payments Bank: The Journey So Far
Incorporated in August last year, the Paytm Payments Bank formally launched operations in May 2017. Between August 2016 and March 2017, it reported losses of around $4.6 Mn (INR 30.7 Cr). According to its MCA filings, the firm saw a turnover of $378K (INR 2.47 Cr) during the said period.
Currently, of the eleven entities which received in-principle licences to launch payment banks, only four are operational. These include India Post Payments Bank, Airtel Payments Bank, Fino Payments Bank and Paytm Payments Bank. But even with just four in the fray, these payment banks have not been able to attract too many deposits so far.