Paytm to Invest 100 Crore in GIFT City, Aims to Set Up New Development Centerby Fintech News Singapore January 11, 2024
Indian payment firm Paytm‘s parent company One97 Communications Limited (OCL) announced that it will invest Rs 100 crore (US$ 12 million) in Gujarat International Finance Tec-City (GIFT City). The investment, which will be made over a certain period, is still pending necessary approvals.
Prime Minister Narendra Modi shared last year that India intends to expand the role of GIFT City to make it a new age financial services and technology nerve center.
This initiative, revealed just before the Vibrant Gujarat Global Summit 2024, is set to bolster Paytm’s presence in the global financial market.
Paytm’s plan involves the creation of an Artificial Intelligence (AI)-powered system for cross-border remittances and payments. This technology aims to provide cost-effective and scalable solutions internationally.
The company’s focus is to leverage GIFT City’s potential as a hub for cross-border financial activities.
Paytm, known for its real-time payments and settlements in India, seeks to extend its expertise to streamline cross-border remittances. By employing AI technology, the company aims to offer faster and more cost-effective remittance solutions.
Additionally, Paytm is set to establish a development center in GIFT City which is expected to generate hundreds of job opportunities.
The center will be staffed with engineers dedicated to creating a suite of innovative financial products and services.
Vijay Shekhar Sharma, Founder and CEO of Paytm said,
“GIFT City is set to become a global financial hub, further putting India on the world map for innovation. The strategic investment in GIFT City represents a pivotal step towards building an Artificial Intelligence-driven cross-border remittance and payments technology landscape, presenting global opportunities.
We are excited about GIFT City serving as an exemplary innovation hub for cross-border activities, enabling overseas investors the flexibility to maintain foreign currency accounts. Furthermore, we intend to leverage this investment to establish a dedicated development center.”