Strategic Investment to Develop Technology Solutions for International Investors in India
One 97 Communications Limited (OCL), the parent company of Paytm, has revealed plans for a significant investment of Rs 100 crore in Gujarat International Finance Tec-City (GIFT City). The investment will be phased gradually, pending necessary approvals, as announced on Wednesday. Paytm aims to collaborate with GIFT City to create innovative technology solutions tailored for international users interested in investing in India.
The investment is earmarked to streamline cross-border remittances, simplifying the process and reducing associated complications, according to an ET report. The announcement coincides with the inauguration of the Vibrant Gujarat Summit 2024 and underscores Paytm's commitment to leveraging technology for enhancing global financial solutions.
In October 2023, the Reserve Bank of India (RBI) introduced regulations governing entities facilitating payment and settlement for cross-border export and import transactions. Vijay Shekhar Sharma, the founder and CEO of OCL, emphasized the strategic significance of the Rs 100 crore investment in GIFT City. He highlighted its role in establishing an artificial intelligence-driven platform for cross-border remittances and payments.
Sharma stated that the investment represents a crucial milestone, offering global opportunities and enabling Paytm to provide fast, reliable, and cost-effective remittance solutions on a global scale. Alongside the investment, Paytm plans to establish a development center in GIFT City, focusing on building cross-border solutions and serving as a technology hub. The center will harness the expertise of Paytm's engineers to develop a range of financial products and services.
As of 10:52 AM, shares of Paytm's parent company One 97 Communications Limited were trading at Rs 684.40 on the National Stock Exchange, down Rs 1.30 or 0.19%. The investment announcement comes amid recent reports of One 97 Communications laying off around 1,000 employees.
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