One97 Communications, which owns Paytm brand, plans to invest Rs 100 crore in Gujarat International Finance Tec-City (GIFT City) to build a global financial ecosystem. The company on Wednesday said that it will make the investment over a period of time and will seek requisite approvals for the same.
Vijay Shekhar Sharma, founder and CEO at One97 Communications, 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. This will enable us to deliver fast, reliable, and cost-effective remittance solutions, reducing friction, at a global scale."
With GIFT city as an ideal innovation hub for cross-border activity, Paytm will use its proven capability to innovate and build new tech for users across the globe looking to invest in India.
Paytm also plans to set up a development centre in GIFT City to build the above solutions and provide a technology backbone. "Furthermore, we intend to leverage this investment to establish a dedicated development centre," Sharma said.
The centre will create jobs and house engineers to develop a suite of world-class financial products and services, the statement said.
On the other hand, Power Finance Corporation (PFC) has received approval from the Reserve Bank of India (RBI) to set up a wholly-owned finance company in the GIFT City in Gujarat.
The entity at the International Financial Services Centre (IFSC) will present new business opportunities for PFC and contribute to the growth of the country's power sector, PFC Chairman and Managing Director Parminder Chopra said in a statement. According to a regulatory filing, PFC is in receipt of the no objection letter from the RBI for setting up a finance company as a wholly-owned subsidiary in the GIFT City.