UBS Group in talks to invest $400 million in Paytm
Swiss multinational investment bank UBS Group AG is pursuing to invest $400 million in India's most valuable startup Paytm. A fund run by UBS's asset management arm is in talks to buy a stake in Paytm, reported Bloomberg.
UBS is reportedly negotiating the purchase of Paytm stock from a group of Indian fintech company employees. While UBS wishes to finalise an agreement in the month of January itself, talks could still be delayed or fall apart, according to Bloomberg. Paytm however isn't raising any new capital as part of the deal. Both Paytm and UBS have declined to comment on the matter.Since India's demonetisation in 2016, there has been a growth in digital payments and the pandemic saw that growth explode even further. Being one of India's most valuable startups, Paytm was valued at $16 million in a 2019 funding round. The company is backed by Chinese tech tycoon Jack Ma's Ant Group Co and competes with giants like Google Pay and PhonePe.