UBS Group may pour $400m into Ant Group-backed Paytm, sources say

The Swiss investment banker has engaged some of its clients as it negotiates the purchase of Paytm stock from a group of the Indian fintech startup’s staff, the sources added. A deal could be finalized as early as this month, though talks could still fall apart.

Paytm would not be raising new funds as part of the potential transaction, the sources also shared.

Representatives from both parties declined Bloomberg‘s requests for comments on the matter.

Founded in 2010, the Indian payment gateway started off as a top-up service for mobile phones. It has since grown to become one of India’s largest payment apps, offering money transfer and bills payment services, as well as merchant and personal loans.

In November 2019, Paytm said it raised US$1 billion at a US$16 billion valuation in a round led by US-based asset management firm T Rowe Price.

Paytm CEO and founder Vijay Shekhar Sharma recently said that the company expects to turn profitable this year, riding the surge in payment platform adoption brought by Covid-19.

“We could very well break even this year, we will start making money,” the chief exec said. “I was surprised by the opportunity of monetization in 2020 during the pandemic, not just by our wealth accounts but also by lending.”