Paytm Singapore finalizes sale of stock rights in Japan for Rs 2,364cr

One97 Communications Limited, which operates as Paytm, announced the sale of its Stock Acquisition Rights (SARs) in PayPay Corporation, Japan, to SoftBank Vision Fund 2, securing net proceeds of JPY 41.9 billion (equivalent to INR 2,364 crore). The deal underscores a valuation of JPY 1.06 trillion for PayPay and highlights the strategic direction of Paytm’s international ventures.

The transaction, initiated by Paytm’s wholly-owned subsidiary, One97 Communications Singapore Private Limited (Paytm Singapore), was approved on December 6, 2024. The proceeds from this sale will bolster the cash reserves of the parent company, providing capital for future initiatives designed to enhance shareholder value.

Strategic alignment and future potential

Despite the divestment, Paytm reaffirmed its commitment to supporting PayPay’s innovation ecosystem. A company spokesperson acknowledged their appreciation for Masayoshi Son, founder of SoftBank, and the collaborative achievements that fueled a mobile payments revolution in Japan. Going forward, Paytm intends to continue contributing through AI-powered technology solutions, further aligning with PayPay’s growth objectives.

The SARs, initially acquired in 2020, represent Paytm’s active participation in Japan’s payments market. With this divestiture, Paytm Singapore has realized significant returns, signaling a successful international partnership.

Financial boost and shareholder focus

Paytm stated that the sale proceeds would reinforce the company’s consolidated cash reserves, a strategic move to fund future expansions and technology initiatives. These reserves are critical for sustaining Paytm’s mission to innovate in financial services and expand its market reach both in India and globally.

Market analysts view the transaction as a prudent financial decision, ensuring liquidity and reinforcing the company’s long-term stability. While the immediate operational focus shifts back to its core markets, the benefits from the Japanese partnership remain integral to Paytm’s international credibility.

About Paytm

Founded under One97 Communications Limited, Paytm is a leader in India’s financial technology landscape, pioneering innovations like mobile QR payments and sound-based transactions. With a mission to mainstream half a billion Indians into the digital economy, Paytm continues to drive its services forward, catering to small businesses and consumers alike.