SUMMARY
- One97 Communications Limited’s investment of Rs 100 crore in Gujarat’s GIFT City is set to be concluded in the coming 6 months.
- It comes with the objective of fostering a cross-border remittance and payments technology landscape.
- GIFT City stands as India’s premier global financial hub.
One97 Communications Limited (OCL), the parent company of fintech Paytm, has disclosed that its investment of Rs 100 crore in Gujarat’s GIFT City, aimed at establishing a global financial ecosystem, is set to be realized within the coming six months.
The company shared with exchanges on January 10 its commitment to invest Rs 100 crore in GIFT City, Gujarat, with the objective of fostering a cross-border remittance and payments technology landscape, thereby opening doors to global opportunities.
The Noida-based firm said in its annual report on August 21, “We wish to inform you that the Board of Directors has also been updated that the Company is initiating the process to seek the necessary approvals for the formation of the subsidiary in GIFT City IFSC, Gujarat. This process is expected to be completed within the next 6 months, subject to the required approvals.”
“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,” stated Vijay Shekhar Sharma, the founder and CEO of Paytm.
The investment is slated to establish a development center, which is expected to not only generate employment opportunities but also dedicate a team of engineers to provide financial services.
The Union Finance Minister, Nirmala Sitharaman, in her Economic Survey presented last month, highlighted the GIFT City International Financial Services Centre (IFSC) as a distinctive international financial jurisdiction located within India. This initiative is designed with the dual objectives of onshoring India-centric international financial services businesses and serving as a preferred gateway for the inflow and outflow of global capital.
GIFT City stands as India’s premier global financial hub. This announcement follows a recent development where the regulatory authority for GIFT City has suspended the approval process for family investment funds, citing feedback from the Reserve Bank of India’s caution regarding potential money laundering concerns.
