In the lights of recent events carried out during Narendra Modi’s visit to Silicon Valley, Paytm has announced investing about $150 – $200 million in startups. The invest will made in over next 18 months duration, said Kiran Vasireddy, Senior VP at Paytm.
Kiran Vasireddy elaborated that company will invest in 10-15 startups with $10 – $15 million each, “We (Paytm) has allocated the amount summing to $150 – $200 million for the investment in next 18 months”.
Vasireddy also that company is ready to invest any amount close to $100 million in companies. However it would depend on business model of the company (investee) and passion of its workforce towards business growth. Primarily the investment would focus on the tech startups and logistics.
Moreover the startups will get access to Paytm’s user base, traffic, technology and management capabilities. In words of Vasireddy, there are as many as 2.5 million transactions on Paytm daily.
The company has already invested $10 million in its first round of funding logistics data startup ‘LogiNext’. In reference of investment made in ‘LogiNext’, Vasireddy said that large logistics companies are technologically capable, while small or startups have a limited access to technology.
He added “To solve this, we are building strong logistics cloud network of the merchants and courier partners; our investment in LogiNext adds muscles to our cloud offerings”.
Kiran further elaborated that Paytm will acquire 20-40% stacks in investee companies. The major parameters includes founding team and their passion, other than that business model, team execution, innovativeness of the company and what difference it can make.
The media report says that Paytm has already funded Jugnoo, Zovi, Gadgets360 and other such recently.