One97 Communications Limited (OCL), the parent company of the listed fintech unicorn Paytm, will be investing INR 100 Crore in Gujarat International Finance Tec (GIFT) City to build a global financial ecosystem, the company told exchanges on Wednesday (January 10).
Incidentally, Paytm’s announcement of investment in Gujarats ’GIFT City comes on the day of the inauguration of the Vibrant Gujarat Summit 2024.
The startup aims to make the investment gradually and will seek necessary approvals for it. It also plans to innovate further and develop new technology for international users interested in investing in India.
The company also aims to streamline cross-border remittances by offering faster and cost-effective solutions powered by artificial intelligence (AI).
Paytm also plans to establish a development centre in GIFT City to create the aforementioned solutions and serve as a technological foundation. This centre will generate employment opportunities and house engineers dedicated to developing world-class financial products and services.
Vijay Shekhar Sharma, founder and CEO at Paytm, said, “GIFT City is poised to become a global financial hub, elevating India’s status on the world stage for innovation. The strategic investment in GIFT City marks a crucial step in building an AI-driven cross-border remittance and payment technology landscape, unlocking global opportunities.”
In November 2022, Paytm claimed to have deployed more than 10,000 payment devices, including soundboxes, QR codes, and card machines, in gram panchayats across the country. This initiative aims to introduce digital payments in rural areas and expand Paytm’s presence in the Indian market, giving the company a first-mover advantage over its fintech competitors.
Recently, Paytm extended its partnership with the global travel tech company Amadeus to enhance the booking experience.
On Wednesday, January 10, Paytm shares opened on BSE at INR 686.05, reflecting a 0.051% increase.
Meanwhile, on Tuesday (January 9), Gujarat chief minister Bhupendra Patel said that GIFT City is poised to become one of the world’s premier international financial centres soon.
“The GIFT City is undergoing massive infrastructure expansion following which the total land area will reach around 3,400 acres,” said Patel, in an email interaction to PTI.
The Centre is looking to develop GIFT City, developed under the Special Economic Zones Act of 2005, with two distinctive zones – the GIFT SEZ (the non-IFSC area) and the GIFT IFSC, as a global financial hub. Additionally, there’s an emphasis on promoting GIFT as a virtual offshore destination for startups and investors.
The post Paytm To Invest INR 100 Cr In GIFT City, To Offer Payment Solutions For Cross-Border Remittance appeared first on Inc42 Media.
