New Delhi: In what could be a major breakthrough for the online payment and e-commerce major, the Competition Commission of India (CCI) on Tuesday approved Japan-based SoftBank’s acquisition of 20% stake in One97 Communications, the parent firm of Paytm.
In a tweet, the CCI said: “@CCI India approves the acquisition of 20 per cent stake in One97 Communications Limited by SoftBank Group Corp.”
.@CCI India approves acquisition of 20 percent stake in One97 Communications Limited by SoftBank Group Corp”
— CCI (@CCI_India) July 18, 2017
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Paytm had filed the request with CCI while announcing the deal.
“We are scaling the system so that we are able to handle the load and transaction volume,” Paytm founder, Vijay Shekhar Sharma, quoted in a report.
Paytm acquired the CCI’s approval after the company’s revenue crossed Rs 1,000 crore, which is the minimum requirement for any company to seek foreign investment.
In May this year, Softbank had committed to fund Paytm with $1.4 billion. Paytm can now use these funds for its expansion plans.
The target launch is August 15, 2017.
Apart from scaling the system, the tie-up will help overall expansion of the digital wallet company.