One97 Communications, owner of electronics payments provider Paytm, is set to raise more than 120 billion rupees ($1.87 billion) from Japan's SoftBank Group, The Economic Times reported on Friday citing sources.
The deal will value Noida-based One97 at about $9 billion and provide a 20 percent stake to SoftBank, the report said.
Moreover, One97 plans to earmark nearly $1 billion to expand its payments business into high growth areas like lending and insurance, the report added.
SoftBank declined to comment. Paytm was not immediately reachable for comment.
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.
However, recent RBI transaction data suggests that the number of digital transactions in India have been declining at a steady pace since the cash situation started stabilising. The number of Credit Card and Debit Card transactions in particular have seen a dramatic decline. The usage of Aadhaar-based payments and payments based on the Bhim app have been picking up, however.
It must be noted that Aadhaar and Bhim based payment solutions have a relatively small number of patrons, making the data insignificant in the larger picture.
With inputs from Reuters