Paytm in Talks with SoftBank to Raise $1.2 to $1.5 Billion

Electronics payments provider Paytm is in talks with Japan's SoftBank Group to raise $1.2 to $1.5 billion in cash, making the latter one of the largest shareholders in the fintech start-up, Mint newspaper reported on Wednesday citing sources.

The deal, which could increase Paytm's valuation to $7 to $9 billion, will see SoftBank buying some shares from existing Paytm investor SAIF Partners and founder Vijay Shekhar Sharma beside investing money in the company, the report said. Read more: Xiaomi Mi6 Launch: Specs, Price and Everything You Want to Know

Local media had reported recently that SoftBank is keen to sell its stake in India's e-commerce firm Snapdeal in exchange for a stake in market leader Flipkart.

Paytm may also buy Snapdeal-owned payments rival Freecharge, as part of the deal, the report said.

Digital payments have assumed great significance in India after the decision of Prime Minister Narendra Modi's government ban on old high-valued bank notes in November led to a severe cash crunch across the country.