New Delhi3 days ago
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Singapore-based One 97 Communication Singapore Pte Ltd, owned by Paytm’s parent company One 97 Communication, is selling its stake in Japan’s digital payments company PayPay Corp. Paytm gave information about this through exchange filing.
However, no information has been given about the amount for which One 97 Communication Singapore Private Limited is selling its stake.
The exchange filing by the company came after reports that One 97 Communications was close to finalizing a deal to sell its stake in PayPay Corp to SoftBank for $250 million (Rs 2,000 crore).
This deal will increase the company’s consolidated cash balance.
Paytm said the board of One 97 Communications Singapore Pte Ltd approved the sale of stock acquisition rights in its board meeting on December 6. The company said that this deal will increase its consolidated cash balance. However, the company did not say how much the consolidated cash balance would increase.
Paytm sold the movie ticketing business in August
Earlier in India, Paytm had sold its movie ticketing business to online food delivery platform Zomato on 21 August 2024. This deal was done for Rs 2,048 crore. Under this deal, Paytm’s entertainment ticketing business subsidiaries Orbgen Technologies Pvt Ltd and Westland Entertainment Pvt Ltd have been transferred to Zomato.
Partnership between Paytm and PayPay Corp was done in 2018
Paytm and PayPay Corp’s partnership dates back to 2018, when both started cashless payment service. Paytm then held a 5.4% stake in PayPay and provided technical support to it. SoftBank had earlier held a large stake in Paytm, but it reduced it in 2024. Paytm is now restructuring to strengthen its banking and fintech services, which includes reducing employee costs and improving the loan business.
Paytm net profit of ₹930 crore in second quarter
Paytm’s parent company One 97 Communications has made a net profit of ₹ 930 crore in the second quarter of FY 2024-25, compared to a loss of ₹ 290.5 crore in the same period last year. There was a one-time contribution of ₹1,345 crore to the company’s net profit.
Excluding the amount from the sale of movie ticketing business, Paytm has suffered a loss of ₹415 crore in this quarter, which is more than the loss recorded in the same quarter last year. The company had released the results of Q2FY25 i.e. July-September on 22 October.
Operational revenue decreased by 34% on annual basis
The company’s operational revenue declined 34% to ₹1,660 crore from ₹2,519 crore in Q2FY25 compared to the previous year.
Paytm was started in 2009
Paytm’s parent company One97 Communications launched the Paytm payment app in August 2009. Its founder is Vijay Shekhar Sharma. Currently, Paytm has more than 30 crore users in the country. The market cap of Paytm is around Rs 28 thousand crores.
