The USD 1 billion marks is the most substantial amount raised by an Indian startup this year. The new funding takes the company's total raised capital to USD 3.5 billion. Interestingly, this is the second big venture for T. Rowe Price in India, after investing heavily in Wallmart earlier in the year, who is one of Paytm's main competitors.

Fremont, CA: Noida-based online payment application Paytm raised USD 1 billion in a Series G funding round, led by U.S. asset manager T. Rowe Price. Other investors included existing investors Ant Financials (contributed USD 400 million), SoftBank Vision Fund (contributed USD 200 million), and Discovery Capital. The latest funding round took the company's valuation to USD 16 billion, higher than any other local startup, and some of the high-profile Asian startups such as Grab and Gojek.

“It’s a USD 1 billion raise led by T Rowe Price,” said Vijay Shekhar Sharma, CEO of One97 Communications, Paytm’s parent. “SoftBank has pumped in USD 200 million while Ant Financial has invested USD 400 million at a USD 16 billion valuation.” The USD 1 billion marks is the most substantial amount raised by an Indian startup this year. The new funding takes the company's total raised capital to USD 3.5 billion. Interestingly, this is the second big venture for T. Rowe Price in India, after investing heavily in Wallmart earlier in the year, who is one of Paytm's main competitors. Paytm had last raised USD 300 million from Warren Buffett’s Berkshire Hathaway in September 2018, valuing the company at USD 10 billion. This is the first primary investment round since then. However, over the course of this year, the company has cashed out employee stock options at a USD 16 billion valuation.

Paytm founder and chief executive Vijay Shekhar Sharma said the fresh capital would be used to court merchants as the company looks to expand its presence among small and medium-sized businesses. The company will also work on expanding its financial offerings, such as lending and insurance. Paytm, which also offers its mobile wallet service in Japan, has amassed 15 million merchants, most of whom have come online in recent years, in India. “This new investment by our current and new investors is a reaffirmation of our commitment to serve Indians with new-age financial services,” he said.

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