Paytm Singapore, the overseas arm of Vijay Shekhar Sharma-led Paytm, has announced the sale of its stake under Stock Acquisition Rights (SARs) in Japan-based PayPay Corporation. The SARs will be sold to a SoftBank Vision Fund 2 entity for JPY 41.9 billion, equivalent to Rs 2,364 crore.
PayPay Valued at JPY 1.06 Trillion
The sale values PayPay Corporation at JPY 1.06 trillion, with Paytm’s stake priced at net proceeds of JPY 41.9 billion after deducting the exercise cost of SARs. The transaction is expected to be finalized by December 2024, subject to corporate approvals and standard closing conditions.
Paytm said the proceeds from the sale will boost its consolidated cash reserves. These funds will be utilized to drive future business initiatives aimed at creating more value for its shareholders. This move aligns with Paytm’s strategy of optimizing its resources for growth.
Paytm and PayPay Partnership
Paytm partnered with PayPay Corporation in July 2018 to expand its mobile payment services in Japan. Over the years, the partnership has helped create a strong foothold for mobile payments in the Japanese market.
A spokesperson from Paytm Singapore expressed gratitude to SoftBank’s Masayoshi Son and the PayPay team for their collaboration in transforming Japan’s payment ecosystem. “We are committed to supporting PayPay’s innovation journey, especially with new AI-powered features to accelerate their vision,” the spokesperson said.
Previous Paytm Stake Sales
This sale follows another major transaction earlier in 2024 when Paytm sold its entertainment ticketing business, Paytm Insider, to food delivery giant Zomato for Rs 2,048 crore.
With this strategic stake sale, Paytm Singapore aims to focus on future innovations and strengthen its core businesses. The additional cash reserves are expected to enable the company to pursue ambitious plans while maximizing shareholder value.
