One97 Communications, owner of electronics payments provider Paytm, is set to raise more than Rs 120 billion ($1.87 billion) from Japan's SoftBank Group, the Economic Times reported on Friday citing sources. The deal will value Noida-based One97 at about $9 billion and provide a 20 percent stake to SoftBank, the report said.
Moreover, One97 plans to earmark nearly $1 billion to expand its payments business into high growth areas like lending and insurance, the report added.
SoftBank declined to comment. Paytm was not immediately reachable for comment.
Digital payments have assumed great significance in India after the decision of Prime Minister Narendra Modis government ban on old high-valued bank notes in November led to a severe cash crunch across the country.