Paytm Sells 12.75% Stake In Jugnoo For INR 3 Cr

Listed fintech major Paytm has sold its entire 12.75% stake in mobility aggregator Jugnoo’s parent Socomo Technologies for INR 3 Cr. 

In an exchange filing, Paytm said its board approved the sale of the stake in Socomo. “The transaction is expected to be completed in the month of March’25 and is in line with our strategic focus on strengthening core payments and financial services business,” the filing said. 

Meanwhile, Jugnoo, in a statement today, said it repurchased Paytm’s 12.75% stake at a valuation of INR 23.52 Cr in a strategic move to consolidate ownership and enhance operational control.

“This buyback allows us to operate independently and provides greater flexibility in our strategic and financial planning,” its cofounder Samar Singla said. 

Jugnoo said it had received a total investment of INR 42.79 Cr from Paytm to date. 

Jugnoo Plans Rights Issue

Founded by Singla and Chinmay Agarwal in 2014, Jugnoo started as an auto-aggregator platform. Since then, it has expanded its offerings and now also provides B2B logistics and hyperlocal food and grocery delivery.

It also provides software solutions to enterprises for mobility business, mapping, and creating super apps. It claims to serve over 350 clients across 75+ countries across the globe.

Jugnoo said it is also providing exit opportunities to other investors. “We’re consolidating a majority stake, ensuring stronger operational control and decision-making capabilities,” Singla said. 

In line with this, it plans to undertake an INR 10 Cr rights issue to expand operations and enhance technological capabilities in mobility and logistics.

The startup has raised more than $18 Mn in funding till date from Snow Leopard Technology Ventures, Rocketship.vc, Kunal Shah, Rakesh Mathur, among others. 

On the financial front, Jugnoo posted a total income of INR 16.2 Cr and a loss of 16.28 Cr in the financial year 2023-24 (FY24).

Paytm’s Focus On Profitability 

The stake sale comes at a time when Paytm is focussing on its core payments and lending business after the RBI’s crackdown on Paytm Payments Bank last year with an eye on turning profitable. 

In line with this, the company has been selling its non-core businesses. In August last year, the Vijay Shekhar Sharma-led company sold its events and movies ticketing arm, Paytm Insider, to Zomato for $241.8 Mn (INR 2,048 Cr). 

In December, it also sold its stock acquisition rights (SARs) in Japan’s PayPay Corporation for INR 2,364 Cr ($279.19 Mn) to SoftBank’s Vision Fund 2. 

In January, Paytm’s board approved the sale of its 100% stake in its wholly owned subsidiary, Xceed IT Solutions Private Limited. 

Editor’s note: The story has been edited after Jugnoo revised its statement to say that that it repurchased Paytm’s stake for INR 3 Cr at a valuation of INR 23.52 Cr.