Mediatek invests $60m in Paytm at $4.8bn valuation

Bengaluru: Taiwan-based

Mediatek

’s investment arm Mountain Capital has invested $60 million in Paytm’s parent

One 97

Communications, valuing the digital payments and commerce firm at $4.8 billion, people aware of the development told TOI. The round marks almost a two-fold increase in Paytm’s

valuation

since it last raised money from the Alibaba group in September 2015.

According to people familiar with the development, the latest funding round is expected to be in the range of $250-300 million. TOI reported on August 29 that the Taiwanese chip maker was likely to lead Paytm’s latest financing round.

An email sent to a Mediatek spokesperson did not elicit any response till the time of going to press while Paytm’s founder Vijay Shekhar Sharma declined to comment on the matter. The latest fund-raise is likely to see a partial secondary sale of shares as well, but the details are being finalised. Sharma, who holds the company’s payments bank licence in his personal capacity, is likely to sell some of his shares in the entity. Paytm recently created two separate entities for its payments and e-commerce businesses.

Chinese international conglomerate and investment firm Fosun, Singapore’s sovereign wealth fund GIC, Foxconn and Temasek are also in discussions with the company. Paytm’s largest backer Alibaba group, which holds 40% stake in the company, and venture fund SAIF Partners, one of its early investors, are also likely to participate in the latest round.