Mediatek has invested around US $60 million through its investment arm Mountain Capital in Paytm’s parent One 97 Communications. The investor has valued India’s leading online payments solutions at US $4.8 billion, hence, almost doubling the valuation of the firm as compared to the last funding that it had recieved though Alibaba 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. One of the dailies reported on August 29 that the Taiwanese chip maker was likely to lead Paytm's latest financing round.
Both the companies have evaded away from commenting further on the issue. An email sent to Mediatek’s spokesperson didn’t trigger any response and on the other hand, Vijay Shekhar Sharma, Founder, Paytm declined to share his views 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.