Paytm\u00a0has raised $1.4\u00a0Bn\u00a0funding from\u00a0SoftBank Group, the Japanese Internet and telecom major. The investment was done in Paytm's parent company One97 Communications.\r\n\r\nWith this move, SoftBank has joined Alibaba Group as a major shareholder and will take a seat on the Paytm board.\r\n\r\nTalking about the funding,\u00a0Masayoshi Son, Chairman & CEO, SoftBank Group Corp.,\u00a0\u201cIn line with the Indian government's vision to promote digital inclusion, we are committed to transforming the lives of hundreds of millions of Indian consumers and merchants by providing them digital access to a broad array of financial services, including mobile payments. We are excited to partner with Paytm in this journey and will provide them with all our support.\u201d\r\n\r\nThis news comes just a day after ecommerce and payments platform Paytm\u00a0finally geared up to roll out its payments bank on May 23, 2017.\u00a0One97 Communications had received permission from the Reserve Bank of India to formally launch the Paytm Payments Bank in January 2017.\r\n\r\nSpeaking on the occasion,\u00a0Paytm founder & CEO\u00a0Vijay Shekhar Sharma said, \u201cWe are at an inflection point in our journey with Paytm. This investment by Softbank and support of the incredible entrepreneur Masa Son is a great endorsement of our team's execution and vision. We believe we have a great opportunity to bring financial inclusion to half a billion Indians.\u201d\r\n\r\nEarlier this week, it was reported that\u00a0Sixth Sense Ventures founder and CEO\u00a0Nikhil Vora\u00a0managed to rake in about $23.4 Mn (INR 150 Cr) by selling his stake in One97 Communications.\u00a0The stake was sold to Chinese ecommerce giant Alibaba Group Holdings.\u00a0Alibaba and its affiliate Alipay now jointly hold about 45% in One97 Communications. Vora had invested in the company\u00a0in 2011 and picked up a 0.35% stake or 1,60,000 shares of One97 Communications. The stake sale valued Paytm at about $6.6 Bn. As per an ET report, the recent fundraising has shot Paytm's valuation to $8 Bn.\r\n\r\nPaytm plans to invest about $1.6 Bn (INR\u00a010,000\u00a0Cr)\u00a0over the next three to five years towards its commitment to enabling India's digital economy.\r\n\r\nAs per a company statement, the newly raised funding will be used to\u00a0grow its leadership in the country\u2019s payment ecosystem, expand its user base, and build a suite of financial services products for its users.\r\n\r\nLast month, it was reported that ecommerce and payments company Paytm was in talks with Japan-based SoftBank to raise about $1.5 Bn in a cash deal.\r\n\r\nIn August 2016, after securing a $60 Mn funding round, One97 Communications, which runs Paytm, created a separate entity called Paytm E-Commerce Pvt. Ltd and transferred its online retail business onto it. In March 2017, Alibaba led a\u00a0massive $200 Mn round in Paytm\u2019s recently formed ecommerce unit. According to the filings with the Registrar of Companies (RoC) reviewed by Inc42, the round in Paytm E-Commerce Pvt. Ltd will be led by Alibaba Singapore E-Commerce Pvt. Ltd, a wholly-owned subsidiary of Alibaba Group Holding Ltd, which will invest $177 Mn (INR 1,182 Cr),\u00a0along with $23 Mn from SAIF Partners.\r\n\r\nFrom ecommerce companies like Amazon that secured a licence from the RBIto operate a prepaid payment instrument (PPI); Instant messaging app WhatsApp that is expected to launch a peer-to-peer payment system in India, within the next six months; to Sweden-based Truecaller, introducing a new UPI-based mobile payment service \u2018Truecaller Pay\u2019\u00a0through a tie-in with ICICI Bank, the digital wallets is reaching a tipping point with both international and local interest.\r\n\r\nThe Indian fintech market is forecasted to touch $2.4 Bn by 2020, a two-fold increase from the market size currently standing at $1.2 Bn. As a per a report by Google and Boston Consulting Group, released in July 2016, the digital payments industry in India is projected to reach $500 Bn by 2020, contributing 15% to India\u2019s GDP. According to Inc42 Datalabs, fintech has brought in $1.77 Bn in funding in India from 2014 to October 2016, with Paytm\u2019s $680 Mn funding from back in September 2015 making up 38.5% of the entire sum. There was a total of 158 deals with 111 of them divulging their funding figures.