Taiwan's largest chip designer MediaTek is investing $60 million (roughly Rs. 402 crores) in India's One97 Communications, valuing the payment services and e-commerce firm at about $5 billion (roughly Rs. 33,517 crores), the company said on Tuesday.
One97, which operates under the trade name Paytm, is looking to raise a total of $300 million (roughly Rs. 2,011 crores) to expand its payments and e-commerce businesses, and also to build a so-called payments bank for which it has won a permit.
The company is in talks with new as well as existing shareholders and expects to raise the remainder of the $300 million in the coming months, a spokeswoman said.
Alibaba Group is One97's largest shareholder after the Chinese e-commerce giant and its finance arm Ant Financial Services invested last year in the company founded by entrepreneur Vijay Shekhar Sharma.
MediaTek is also a shareholder in Paytm's competitor MobiKwik which last week sealed an up to $40 million investment from Net1 UEPS Technologies Inc.
© Thomson Reuters 2016
Disclosure: One97 is an investor in Gadgets 360.
Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.