Microsoft has agreed to invest in one of India’s tech giants – Paytm – after Facebook purchased 9.99 per cent stakes in Jio by investing $5.7 billion. According to the Economic Times, Paytm is looking to raise an additional $100 million after raising $1 billion last year, and Microsoft will help raise that sum for the company.
Talks with Microsoft started last year, according to the article, when Paytm was raising funds. Unfortunately, this time Microsoft was unable to invest. Nonetheless, it is “possibly going to pump in cash now.”
Paytm posted a loss of $549 million for the financial year ended March 2019. Nearly every mobile payment company in India doesn’t make enough money. So, one might think Microsoft isn’t right to invest in the mobile payment giant in India. However, according to a study by ASSOCHAM-PWC, one of the apex trade associations in India, the country’s digital payment industry will make $135.2 billion by 2023.
However, when it comes to creating strategic partnerships with India’s tech companies, Microsoft is not a newcomer. Before that, Microsoft made a cloud-related contract with Flipkart, a Walmart-owned eCommerce company. In the contract, Microsoft allowed Flipkart to use Azure as an exclusively public cloud platform.
Also, India’s connectivity giant Reliance Jio signed a deal with Microsoft last year to build new custom solutions on Azure for large companies. Additionally, Jio leveraged Microsoft’s cognitive language services to support 13 Indian languages on its app ecosystem.