Vijay Shekhar Sharma, founder and CEO of Paytm & One97 Communications infused 218 Cr in its new venture Paytm Payments Bank.
According to the report Vijay Shekhar will invest Rs 111 Crore and while One97 Communications Invest 107 Crore out of Rs 218 crore fresh capital. The payment bank will start operations this month from Uttar Pradesh.
Earlier in January, Paytm received RBI nod to start the bank. Till date, Paytm Payments Bank has issued 2,18,000,000 shares to the three shareholders. In others, Airtel Payments Bank and India Post Payments Bank already launched their operations.
In December Paytm CEO has sold his 1% equity of Paytm’s parent firm One97 Communications for about Rs 325 crore. The amount he received will be invested in the payments bank. Sharma holds 51% stake in Paytm Payments Bank, as per RBI guidelines. The company is planning to invest Rs 400 crore in to the payments bank.
Paytm, which is run by One97 Communications, created two separate entities -Paytm E-commerce and Paytm Payments Bank. The e-wallet business will connect with payment bank in future using payment bank. On the question of Alibaba shares in Payment Bank, Paytm CEO denied any share distribution to Chinese e-commerce company.