One97 Communications-owned Paytm, has reportedly pledged all its current assets and mutual fund investments to ICICI Bank Ltd in order to borrow USD 196 million for its working capital needs.
Last Month, Paytm and ICICI Bank Ltd signed an agreement according to which One97 Communications’ pledged its current assets worth a total of INR 7,085.1 crore (as on 31 March 2018) to the bank in order to increase the startup’s borrowing capacity. Until now, Paytm had the borrowing capacity upto INR 400 crore.
Amid present cash crunch conditions in the market, this increase in borrowing limit will help Paytm in securing capital for its everyday operations. The agreement was formally registered with the corporate affairs department on Wednesday, as reported by Mint.