Indian payments company Paytm sells stake in PayPay to SoftBank
Indian fintech company Paytm has announced that it will sell its shares in payment service PayPay to SoftBank for $279.2 million (approximately 41.8 billion yen).
Paytm arm to sell Stock Acquisition Rights in Japan's PayPay for Rs 2,364 crore - Times of India
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/
In a regulatory filing on December 7, 2024, the Singapore branch of One97 Communications, the Indian company that owns Paytm, disclosed that it would sell its PayPay shares to SoftBank Vision Fund 2.
Paytm and Paytm Singapore have signed agreements with SoftBank and Yahoo to provide technical services to PayPay, and in exchange for the services, Paytm Singapore has acquired stock options for PayPay.
The sale of PayPay shares is expected to be completed by December 2024. SoftBank was a major shareholder of Paytm when it was founded, but decided to sell its shares in June 2024.
With SoftBank divesting its shares in Paytm and Paytm now selling its shares in PayPay, the capital partnership between the Japanese and Indian payment giants will be dissolved, but Paytm says it will continue to support PayPay through innovation.
In a statement, Paytm said, 'We are grateful to Masayoshi (SoftBank CEO Masayoshi Son) and the PayPay team for giving us the opportunity to revolutionize mobile payments in Japan. We remain fully committed to and will continue to support PayPay's product and technology innovation. We are working to introduce new features powered by AI to accelerate PayPay's vision in Japan.'
Paytm is reportedly looking to use the $1.46 billion in cash it has raised from the sale to try to bounce back after reports that it has lost users and seen its revenues stagnate in the wake of India's tightening regulations.
'The net proceeds from the sale of the equity warrants will strengthen One97 Communications' consolidated cash position and help drive future business initiatives focused on maximizing shareholder value creation,' Paytm said in a statement.
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