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Mobile commerce player and digital payments company Paytm has borrowed close to Rs 300 crore from private sector lender ICICI Bank in working capital loans, reports the Economic Times. Paytm founder and CEO Vijay Shekhar Sharma told the publication that this was a treasury management move and secured the credit lines by pledging fixed deposits and cash reserves.

Paytm’s loan from ICICI Bank comes at a time when funding in Indian startups has been dwindling. A report by Mint said that venture capital firms’ mid-stage deals over the next three months are likely to be struck at valuations that are, on average, anywhere between 25% and 50% lower compared with 2015. The report also added that VC firms are less likely to invest or participate in series B and C rounds of funding.

Earlier this month, it was reported that HDFC Bank extended a line of credit of over Rs 450 crore to ecommerce player Flipkart, according to latest registrar of companies filings.  The company’s move to get credit from banks comes shortly after Morgan Stanley (one of its investors) marked down its investment in the company by 27% reducing Flipkart’s valuation to little over $11 billion from $15.2 billion.

Paytm funding

In September 2015, Paytm raised an undisclosed amount in a fresh round of funding from Alibaba and Ant Financial. According to this ET report, the Alibaba Group picked up about 20% stake in Paytm for about $680 million which saw Ant Financial’s stake lowered to 20%.

In February 2015, Ant Financial Services, one of Alibaba’s affiliate companies, acquired 25% stake in One97 Communications for an undisclosed amount.

Paytm and ICICI Bank virtual cards

December last year, Paytm partnered with India’s ICICI Bank to launch virtual prepaid cards which can be used by wallet users at both offline and online stores for purchases. The partnership will also allow users to recharge their wallet at any ICICI Bank branch via cash or cheques.