Strategic Sale: Paytm Divests Stake in Japan's PayPay

One97 Communications, owner of the Paytm brand, has announced the sale of its Stock Acquisition Rights in Japan's PayPay to SoftBank Vision Fund 2 for Rs 2,364 crore. The sale, involving a 7.2% stake in PayPay, reflects the company's strategic shift and is expected to finalize by December 2024.

One97 Communications, the fintech powerhouse behind the Paytm brand, has sanctioned the divestment of its Stock Acquisition Rights in Japan's PayPay to SoftBank Vision Fund 2. The transaction, disclosed in a regulatory document on Saturday, is valued at Rs 2,364 crore, approximately JPY 41.9 billion.

The strategic move follows an agreement wherein Paytm and its Singapore arm had previously collaborated with notable Japanese enterprises, including Softbank Corp and Yahoo Japan Corporation, to offer technological services to PayPay, a digital wallet entity. This collaboration allowed Paytm Singapore to secure Stock Acquisition Rights, translating to a 7.2% equity stake based on full dilution.

With this sale awaiting completion by December 2024, the valuation of PayPay is poised at USD 3.8 billion, equivalent to about Rs 32,000 crore. The financial maneuver marks a significant development in Paytm's international business strategies.