Paytm Plans ₹100 Cr Investment in GIFT City for AI-Powered Cross-Border Remittance

One97 Communications Limited, the parent company of the popular payment platform Paytm, has announced an investment of ₹100 crore in Gujarat International Finance Tec-City (GIFT City). The investment aims to build a worldwide financial system and encourage innovation in cross-border activities. The announcement was made on 10 January, just ahead of the Vibrant Gujarat Global Summit in Gandhinagar.

Paytm, known for its innovation in the fintech space, will utilize its capabilities to develop new technologies catering to a global audience. The company plans to offer faster and cost-effective solutions powered by artificial intelligence (AI). By establishing a presence in GIFT City, Paytm aims to serve as a hub for global users looking to invest in India.

Development Center in GIFT City

As part of this initiative, Paytm will set up a development center in GIFT City to build cutting-edge solutions and provide technology support. This center will not only create job opportunities but also house engineers dedicated to developing world-class financial products and services.

The strategic investment in GIFT City is seen as a crucial step toward building an AI-driven cross-border remittance and payments technology landscape. Paytm's founder and CEO, Vijay Shekhar Sharma, views this move as an opportunity to deliver fast, reliable, and cost-effective remittance solutions on a global scale.

Vijay Shekhar Sharma highlights GIFT City's potential to become a global financial hub, showcasing India's innovation on the world stage. The investment is not only about financial gains but also about positioning GIFT City as an exemplary innovation hub for cross-border activities. Overseas investors will benefit from the flexibility to maintain foreign currency accounts.

As of now, Paytm shares are trading at ₹683.30 slightly dipped by 0.35% recently but have shown a positive trend, rising by 4.06% in the past month. However, over the last six months, there has been a drop of 17.03%. Looking at the past year stock fell 18.72%. It's important to remember since its stock market debut, Paytm's shares reached their highest value on November 26, 2021, at ₹1782. Currently, the stock is down by almost 62% from this peak.

Final Words

In a recent Memorandum of Understanding (MoU) with Ayodhya Nagar Nigam, Paytm worked with Ayodhya Nagar Nigam to enable mobile payments using QR codes, Soundbox, and card machines. This effort aimed to provide smooth mobile payment services during the inauguration of the Ram Mandir in Ayodhya.

Paytm's investment in GIFT City is a big step in improving global financial solutions, especially in cross-border money transfers. The company's dedication to innovation, technology, and job creation supports its vision of making GIFT City a major global financial hub.