US-based mutual fund T Rowe has raised Paytm's valuation by about 35 percent to $255 per share, taking the total enterprise value of the Indian digital financial services firm to $16 billion, according to a regulatory filing.

                                   

This implies that the value of each Paytm share was $255 as on September 30, 2020.

The mutual fund company had earlier cut down the valuation of Paytm to $188 a share due to the impact of the COVID-19 pandemic.

When contacted, a Paytm spokesperson said, "We see strong traction in our business across digital payments, consumer internet, merchant services, and financial services. We are thrilled and motivated with all our shareholder's support that Paytm has always enjoyed. This has helped us in creating India's home-grown digital champion."

T Rowe Price had invested at least $150 million in Paytm in December 2019.

The Paytm spokesperson added that every investor who has ever invested in Paytm has held on to the shares for at least 5 years and has always sold it at a profit.

Paytm's financial year 2020 revenue has increased to Rs 3,629 crore, even as cash burn has reduced by over 60 percent in the last 18 months.

According to the press release, the company is now taking the payments revolution to the next level by enabling the merchant partners to accept payments from Paytm wallet, UPI apps, and RuPay cards at zero charges. Paytm will absorb Rs 600 crore in MDR charged annually by banks and other charges to support MSMEs during the ongoing pandemic.