Vijay Shekhar Sharma, the founder of Paytm, will buy a 10.30% interest in the business from Antfin (Netherlands) Holding BV. 6.53 crore Paytm shares would be transferred by Antfin to Resilient Asset Management B.V., an organization in which Sharma owns a 100% ownership.
Sharma’s stake in the business would rise to 19.42%, while Antfin’s will decline to 13.5%.
As a result, Antfin, a subsidiary of Ant Group Co. in China, would no longer be the largest shareholder in Paytm.
Vijay Shekhar Sharma, the company’s founder, managing director, and CEO, and Antfin (Netherlands) Holding B.V. (“Antfin”) have entered into an agreement whereby Antfin will transfer 65,335,101 shares of the company to an entity that is 100% owned by Sharma – Resilient Asset Management B.V. (“Transaction”) on August 7, 2023, according to the BSE filing from Paytm’s parent company One97 Communications. This denotes the transfer of 10.30% of the Company’s (Company/Paytm) share capital.
Sharma tweeted after the agreement was reached, “I am proud of Paytm’s role as a true champion of made-in-India financial innovation and our successes in changing mobile payments and aiding in the inclusion of formal financial services in the country. I want to sincerely thank Ant for their collaboration and continuous support over the past few years as we announce this change in ownership.
After the company disclosed that its founder Vijay Shekhar Sharma would buy a 10.30% stake in the business from Antfin (Netherlands) Holding BV, Paytm’s share price increased by more than 11% in early trade on Monday. On the BSE, Paytm shares increased by as much as 11.57% to $887.55 a share.
The financial startup recently reported a 19% year-over-year increase in average monthly users to 9.3 crore. According to a BSE filing, Paytm’s merchant subscriptions totaled 82 lakh, with 41 lakh new subscriptions added during the course of the year.
According to Paytm, the business observed a sequential growth in merchant subscriptions of about 4 lakhs in July 2023.
Paytm also stated that it distributed 43 lakh loans in July of this year, totaling 5,194 crore, representing a staggering annual growth of 148%.
Gross Merchandise Values (GMV) or payment volumes for retailers increased 39% year over year to $1.47 lakh crore.
In its June quarter of FY2024, the fintech platform recorded a reducing loss to 358.4 crore.
