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Paytm said that the transaction is expected to be completed in December 2024.
Paytm’s move comes as it seeks to regain foothold in the fintech space following regulatory setbacks to its banking entity, Paytm Payments Bank
One97 Communications, the fintech company behind the Paytm brand, announced that its Singapore-based subsidiary has approved the sale of its Stock Acquisition Rights in Japan’s PayPay to SoftBank Vision Fund 2 for Rs 2,364 crore.
The decision was disclosed in a regulatory filing on Saturday.
Paytm Partners with SoftBank and Yahoo Japan for PayPay Services
Paytm and Paytm Singapore had signed an agreement with the Japanese digital wallet firm, Softbank Corp, Softbank Group Corp and Yahoo Japan Corporation to provide technology services to PayPay.
Acquisition of Stake in PayPay
In lieu of the services, Paytm Singapore had acquired Stock Acquisition Rights, convertible into 1,59,012 shares or a 7.2 per cent stake in PayPay on a fully diluted basis.
Board Approval for Sale of Stake
“One97 Communications Singapore Private Limited has informed the company on December 06, 2024, at 12:49 pm (IST), that its Board of Directors at its meeting held on December 06, 2024, has approved the sale of all its Stock Acquisition Rights in PayPay Corporation, Japan, to SoftBank Vision Fund 2 entity for net proceeds of JPY 41.9 billion (equivalent to Rs 2,364 crore),” the company said in the filing.
Transaction Details
This transaction puts the valuation of PayPay at around USD 3.8 billion or about Rs 32,000 crore.
Expected Completion Timeline
Paytm said that the transaction is expected to be completed in December 2024.
(With PTI inputs)