The Competition Commission of India (CCI) has approved SoftBank Group Corp’s acquisition of 20 per cent stake in One97 Communications, the parent of digital payments company Paytm.
The nod for the biggest investment by the Japanese internet and telecom major comes two months after the Vijay Shekhar Sharma-founded company raised Rs 9,000 crore or $1.4 billion from Softbank. The CCI announced the approval on its twitter handle on Tuesday.
The move would help SoftBank maintain its bellwether status of being the lead investor in the company.
SoftBank, after its failed investment in Jasper Infotech-owned Snapdeal and FreeCharge to the tune of billion dollars, will be the biggest stakeholder in Paytm’s parent company, pushing Chinese internet giant Alibaba to the second spot.
“In line with the government’s vision to promote digital inclusion, we are committed to transforming the lives of hundreds of millions of Indian consumers and merchants by providing them digital access to a broad array of financial services, including mobile payments. We are excited to partner with Paytm in this journey and will provide them with all our support,” said Masayoshi Son, chairman and chief executive officer, SoftBank Group Corp, in a statement had said in May,
The investment valued One97 Communications, the parent company of both Paytm Payments Bank and PayTm Mall, at $9 billion.
The nod also sets the stage for Paytm to be aggressive on its Payments banking business and the e-commerce business with Paytm Mall.
Source: Business-Standard 