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Paytm’s subsidiary Paytm Cloud Technologies has received the board’s nod to set up three new subsidiaries in the UAE, Saudi Arabia and Singapore
The move comes as the fintech major looks to expand and monetise its tech-enabled payments and financial services in international markets
Another Paytm subsidiary, Mobiquest Mobile Technologies is set to offload its entire 100% stake in its wholly owned subsidiary Xceed IT Solutions
Fintech major Paytm
is planning to set up three new subsidiaries in the UAE, Saudi Arabia, and Singapore through its arm Paytm Cloud Technologies as the Vijay Shekhar Sharma-led company looks to expand and monetise its tech-enabled payments and financial services in international markets.
In an exchange filing today (January 20), the company said that its wholly-owned subsidiary Paytm Cloud Technologies Limited’s (PCTL’s) board approved the incorporation of the three new companies. Once set up, these businesses will become step-down subsidiaries of Paytm.
“We believe that our technology-led merchant payments and financial services distribution business model in India has the potential for expansion in similar international markets. We have developed a portfolio of innovative hardware, software and services stack in India, which can be deployed and monetised internationally,” said Paytm.
The listed fintech giant said that it is exploring various options, including inorganic expansion, local licenses, strategic investment, and partnerships in these overseas markets.
The wholly owned subsidiaries will be incorporated within 6 months with an initial investment of up to INR 20 Cr in each of these business units in one or more tranches.
Meanwhile, Mobiquest Mobile Technologies, another subsidiary of Paytm, has received approval from its board to offload its entire 100% stake in its wholly owned subsidiary Xceed IT Solutions.
These shares will be acquired by the existing directors of Xceed IT, Vineet Narang and Sabina Kamal, for a cash consideration of INR 60,728.
Mobiquest Mobile Technologies operates in the information technology (IT) sector and provides computer programming, consultancy, and related services.
Paytm managed to trim its consolidated net loss by 6% to INR 208.5 Cr in the third quarter of the financial year 2024-25 (Q3 FY25) from INR 221.7 Cr in the year-ago quarter.
The company had reported a net profit of INR 930 Cr in the September quarter of the ongoing fiscal year.
Operating revenue declined 36% to INR 1,827.8 Cr during the quarter under review from INR 2,850.5 Cr in the year-ago period. However, it rose 10% from INR 1,659.5 Cr on a quarter-on-quarter basis.
