The Swiss bank is reportedly poised to pour several hundred million into a payments start-up in India. The investment is alongside some of the Swiss wealth manager's ultra-rich clients.
Zurich-based UBS is negotiating an $400 million investment in Paytm, an Indian e-commerce payment system «Bloomberg» (behind paywall) reported on Thursday, citing people close to the talks. The bank's asset management arm wants to co-invest with UBS' wealthy clients, the outlet reported – which would mark one of the largest such deals.
The ten-year-old fintech was valued at $16 billion its last round of financing two years ago. It competes with services like Google Pay or WhatsApp's payment service, as well as regional start-ups.
Prominent Investors
UBS is attempting to buy shares from Paytm employees, the news service reported. It doesn't appear to be a done deal yet: «UBS aims to finalize an agreement as soon as this month, though talks could still be delayed or fall apart,» «Bloomberg» reported from sources.
Paytm counts Softbank, Ant Financial, Berkshire Hathaway, and asset manager T. Rowe Price, among its investors. Its CEO, Vijay Shekhar Sharma, told «Reuters» this week Paytm could turn a profit as soon as this year.
