Paytm’s subsidiary, One97 Communications Singapore Private Limited, has agreed to sell its Stock Acquisition Rights (SARs) in PayPay Corporation, Japan, to SoftBank Vision Fund 2 for a net value of JPY 41.9 billion, which is approximately INR 2,364 crore. The transaction, expected to close in December 2024, will enhance the consolidated cash reserves of Paytm’s parent company, One97 Communications Limited (OCL), and will be used to fund future business initiatives.
Paytm Group has confirmed it will continue to support PayPay’s technology and product innovations. In addition, Paytm is committed to assisting PayPay with AI-powered feature development to accelerate its presence in Japan’s mobile payment sector.
The SARs, which were acquired by Paytm Singapore in September 2020, are valued at JPY 41.9 billion after accounting for the exercise cost of SARs. The sale is contingent upon satisfactory completion of corporate approvals, execution of transaction documents, and customary closing conditions.
Paytm Singapore spokesperson said, “We are grateful to Masayoshi-san and the PayPay team for giving us the opportunity to together create a mobile payment revolution in Japan. We remain fully committed and will continue to support PayPay’s product and technology innovations in future. We are working on introducing new AI-powered features to accelerate PayPay’s vision in Japan.”
The deal strengthens Paytm’s cash position while it continues to support PayPay’s growth and innovation.
Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.
