PhonePe founder Sameer Nigam says Paytm shouldn't be targeted for receiving foreign funding

Paytm has received considerable blowback since the Indian government banned 59 Chinese apps. The blowback is a result of Paytm's funding by Alibaba, China's biggest e-retailer. Paytm and its founder Vijay Shekhar Sharma has faced the brunt of the criticism, despite Shekhar praising the government's move to ban the 59 apps. Now, amid the scrutiny, Paytm has found an unlikely ally in one of its biggest rivals.

In an interview with ET Now, Sameer Nigam, the founder and CEO of PhonePe, publicly defended his arch rival, hitting out at critics who called Paytm Chinese simply for receiving funding from Alibaba.

"Indians will be much more competitive when we compete in the global market. I don't think you need to ban Chinese apps for Indians to innovate for India. That said, in times of military escalation, there is a different problem. They are concerned about data theft or security of these applications. I am a proponent of data security for sensitive data. Pass the data privacy bill and enforce it," Nigam said.

Also Read: Vijay Shekhar Sharma of Paytm, which has big Chinese investments, says Chinese apps ban is ‘in national interest’

"Trying to say it is a Chinese app because of their shareholding is just absurd," he added. Nigam stressed that Paytm is headquartered in India and has thousands of employees here. "Don't vilify the company, don't target Vijay and Paytm simply because they have Alibaba capital."

Nigam's comments come at a time when anti-Chinese sentiment is at record high in the country, but more than anything else they seem to come from a place of reason, considering so many companies in India have international funding.

PhonePe is owned by US retail giant Walmart. Nigam's words for competitor MobiKwik were not that kind, claiming that both companies ride on foreign capital and cannot ride high on the 'truly Indian' mantle.

Also Read: Ban on Chinese apps alone will not address long-term information threats