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Indian fintech company Paytm has announced that it will sell $279.2 million (approximately 41.8 billion yen) worth of shares in payment service PayPay to SoftBank.
Paytm arm to sell Stock Acquisition Rights in Japan’s PayPay for Rs 2,364 crore – Times of India
https://timesofindia.indiatimes.com/business/india-business/paytm-arm-to-sell-stock-acquisition-rights-in-japans-paypay-for-rs-2364-crore/articleshow/116071392.cms
Paytm sells stake in Japan’s PayPay to SoftBank in a Rs 2,364 crore deal – Times of India
https://timesofindia.indiatimes.com/business/india-business/paytm-sells-stake-in-japans-paypay-to-softbank-in-a-rs-2364-crore-deal/articleshow/116077890.cms
Paytm sells PayPay stake to SoftBank for $279.2 million | TechCrunch
https://techcrunch.com/2024/12/06/paytm-sells-paypay-stake-to-softbank-for-279-2-million/
The Singapore branch of One97 Communications, the Indian company that owns Paytm, announced in a document submitted to regulatory authorities on December 7, 2024 that it will sell its shares in PayPay to SoftBank Vision Fund 2.
Paytm and Paytm Singapore had entered into agreements with SoftBank and Yahoo to provide technical services to PayPay, and Paytm Singapore acquired PayPay’s stock acquisition rights in exchange for providing the services.
The sale of PayPay shares is expected to be completed in December 2024. Softbank was a major shareholder that invested in Paytm when it was established, but decided to sell its shares in June 2024.
With SoftBank relinquishing its shares in Paytm and Paytm selling its shares in PayPay, the capital alliance between the Japanese and Indian payment giants will be dissolved, but Paytm will continue to support PayPay through innovation. Masu.
Paytm said in a statement: “We are grateful to Masayoshi (SoftBank CEO Masayoshi Son) and the PayPay team for giving us the opportunity to start a mobile payment revolution in Japan. We will continue to support PayPay’s products and technology. We are fully committed to innovation and will continue to support it.We are working on introducing new AI-powered features to accelerate PayPay’s vision in Japan.”
Paytm is reportedly losing users due to stricter regulations in India, and its revenue is slumping. Paytm is believed to be planning to use the $1.46 billion (approximately 69 billion yen) in cash from this stock sale to make a comeback.
Paytm said, “The net proceeds from the sale of subscription rights will strengthen One97 Communications’ consolidated cash reserves and help drive future business initiatives focused on maximizing shareholder value creation. ‘ announced.
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