Monday 18 February 2019

Paytm parent One97 Comm pledges all assets to borrow from ICICI Bank

Paytm parent One97 Comm pledges all assets to borrow from ICICI BankOne97 Communications, which owns digital payments major Paytm, has pledged all it current assets and mutual fund investments to ICICI Bank in order to be able to borrow up to Rs 1,400 crore for working capital, according to documents filed with the Registrar of Companies.

Working capital is needed for every corporate entity to function, but industry executives said an enhancement in the limit could indicate the company might need money to aggressively fund its expansion plans or use it for new businesses. Paytm could be using the funds to push its plans on Paytm Postpaid, which it runs in partnership with ICICI Bank, they added.

ET's email query to One97 Communications remained unanswered till the time of going to press.

Through Paytm Postpaid, eligible customers can buy services at one go and pay later. The company had started the service with ICICI Bank customers only. Industry executives have pointed out that this could be the next big disruption in the payments space.

Paytm, founded by Vijay Shekhar Sharma, has grown from being a payments entity to handling mutual funds, e-commerce, and hotel bookings, among other businesses.

It was reported recently that the company would be moving from a consumer facing space to a business-to-business entity for Paytm Mall.

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