Indian Startup Paytm has reportedly pledged all its assets and mutual fund investments to private lender ICICI bank in a move to increase working capital. The deal is said to be finalised but has not yet confirmed by any of the involved party. The deal if completed will increase Paytm’s borrowing capacity to 1,400 Crore.
As per reports, last month Paytm signed a deal with ICICI Bank to pledge all its assets worth ₹7,085.1 Crore ( as of 31 March 2018) to increase its borrowing capacity, which until now was Up to ₹400 Crore only.
“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,” as per the person close to the deal.
Paytm’s CEO Vijay Shekhar Sharma recently announced his plans to double the Paytm’s GMV(Gross Merchantise Volume) to $2 billion by the end of current fiscal. Paytm is the market leader in the digital payment platform narrowly beating PhonePe and Google Pay.
Read: Paytm leaves PhonePe and Google Pay behind, records highest UPI transactions
Many big conglomerates like Jack Ma‘s AliBaba and Warren Buffett‘s Berkshire Hathaway have heavily invested in the Vijay Shekhar led Indian startup. Paytm is one of the best performing Indian startup and is eyeing on the the digital payment market on just in India but also in other growing economies like Canada and Japan.