The digital payments startup has clearly been a beneficiary of Prime Minister's Modi's war on cash in India---the potential investment will value the company at approximately $7bn.
The Paytm deal would be a vote of confidence in the India market amidst a brutal downturn in the venture market. Hundreds of fledgling companies are cutting staff or closing their doors. Indeed, SoftBank is said to be pressing Snapdeal, an Indian e-commerce provider it backs, to merge operations with market leader Flipkart Online Services Pvt. in what would be a dramatic sign of consolidation in the market.