Paytm Nearing $250 Mn Stake Sale Deal In Japan’s PayPay

Making another stride towards its strategy of divesting its non-core assets, Paytm’s parent company, One97 Communications, is nearing finalisation of a $250 Mn (around INR 2115 Cr) deal to offload its stake in Japanese digital payments firm PayPay Corporation to SoftBank Group.

Moneycontrol reported the development first.

Responding to Inc42’s queries on the development, Paytm said, “We will provide an update through the appropriate stock exchange filing in due course. At this moment, we are not able to offer further comments as we must adhere to the protocols for listed companies.”

After this sale, Paytm’s cash reserves are expected to increase from over INR 10,000 Cr to about INR 12,000 Cr.

Paytm’s association with PayPay dates back to 2018 when it partnered with PayPay Corporation, a joint venture established by SoftBank and Yahoo Japan (now known as Z Holdings).

This collaboration aimed to introduce QR-code-based cashless payment services in Japan, leveraging Paytm’s expertise in mobile payments.

Last year, a Reuters report indicated that PayPay was considering a US listing to leverage higher valuations in the market. 

Not to mention, the company earlier this year sold its entertainment ticketing platform, Paytm Insider, to Zomato for INR 2,048 Cr. 

It is pertinent to note that such divestments are aimed at allowing Paytm to focus on its primary business of digital payments and financial services.

The development coincides with Paytm’s recent bull run in the stock market. While Paytm’s stock touched a new 52-week high on the BSE yesterday (December 5), its last four trading sessions have ended in the green. 

However, today the shares jumped a marginal 0.86% to reach an intraday high of INR 964.80. At 11:20 AM, it was trading at INR 950.30, 0.6% below the previous close. 

At the above mentioned time, Paytm’s trading volume was at 32.9 Lakh while its market capitalisation was at INR 60,805 Cr. 

Notably, the shares have rallied almost 47.7% on a year-to-date basis, surpassing benchmark equity index BSE Sensex, which surged around 13% during the same period.

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