Paytm’s wholly-owned subsidiary, One97 Communications Singapore Pvt Ltd (Paytm Singapore), announced the sale of its Stock Acquisition Rights (SARs) in Japan’s PayPay Corporation to SoftBank Vision Fund 2. The deal, valued at ¥41.9 billion (approximately ₹2,364 crore), is expected to conclude by December 2024, pending corporate approvals and other customary conditions.
Deal Highlights
- Transaction Value: ¥41.9 billion (~₹2,364 crore).
- Buyer: SoftBank Vision Fund 2.
- PayPay’s Valuation: The Japanese digital payments company is now valued at ¥1.06 trillion.
- Proceeds Usage: The sale will bolster Paytm’s cash reserves, aiding its strategic initiatives to enhance shareholder value.
Paytm’s Continued Collaboration with PayPay
The Paytm Group reaffirms its commitment and stays invested in this relationship as PayPay continues this journey of growth in Japan by innovating on technology and AI-powered features.
Paytm Singapore said in a filing, “We continue to be committed to supporting PayPay’s technology and product innovations and are on the development of AI-based solutions to further drive the company’s vision in Japan.” Paytm Singapore bought the SARs in September 2020. This sale will yield substantial proceeds to Paytm, thereby bolstering its financial health and future plans.
Shares of Paytm’s parent firm, One97 Communications, rose 2% to close at ₹975.35 on December 6, reflecting investor optimism over the strategic monetization of non-core assets.
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Source: Moneycontrol
News Desk
