One97 Communications that owns Paytm announced on Wednesday that it will invest Rs 100 crore in Gujarat International Finance Tec-City (GIFT City) to build a global financial ecosystem. This announcement came ahead of the Vibrant Gujarat Global Summit 2024, scheduled to be inaugurated by Prime Minister Narendra Modi on January 10.

The company said that it would make the investment over a period of time and after necessary approvals.

Paytm founder and CEO Vijay Shekhar Sharma said that GIFT City is set to become a global financial hub putting India on the world map for innovation. “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. This will enable us to deliver fast, reliable, and cost-effective remittance solutions, reducing friction, at a global scale,” said Sharma.

He also lauded GIFT City for serving as an “exemplary innovation hub for cross-border activities” that would enable foreign investors to maintain foreign currency accounts.

Shares of One 97 Communications Ltd, Paytm’s parent, were trading slightly up in Wednesday’s trade. The stock rose 0.39 per cent to trade at Rs 693.45 in early deals.

Paytm will use its capability to innovate and build new tech for users across the globe looking to invest in India, the company said. The company also stated that it aims to reduce friction in cross-border remittances and AI-driven faster and cost-effective solutions.