Inc42 Daily Brief
Stay Ahead With Daily News & Analysis on India’s Tech & Startup Economy
After sitting atop the ecommerce pyramid and raising enough rounds of funding, companies like Flipkart and Paytm are turning towards banks for capital loans.
A report by TOI stated that Noida-based mcommerce platform, Paytm, has taken a loan of $44.7 Mn (INR 300 Cr) from ICICI bank in two tranches.
Informing about the development, Vijay Shekhar Sharma, founder, Paytm said, “This is a treasury management move for working capital. While adequate funds are there, it is advised by our finance teams to get these credit lines for working capital on the back of security, such as FDs (fixed deposits), mutual funds, etc., in order to conserve cash.”
However, an email sent to Paytm elicited no response.
Paytm has filed documents with the Registrar of Companies (RoC), and has pledged cash assets, as security, with the bank. Last year, Paytm had taken a small loan of INR 15 Cr for working capital requirements from HDFC Bank, which, according to RoC documents, have been repaid.
Last week, Indian ecommerce major, Flipkart, secured a credit line of over $67 Mn (INR 450 Cr) from HDFC Bank.
Note: We at Inc42 take our ethics very seriously. More information about it can be found here.