One97 Communications, the parent company of Indian digital payments giant Paytm, is reportedly considering finalizing a deal to sell its stake in Japan’s PayPay Corporation to SoftBank Group. The transaction, valued at approximately $250 million (around Rs 2,000 crore), is expected to bolster Paytm’s cash reserves significantly, from over Rs 10,000 crore to approximately Rs 12,000 crore.
The news, first reported by Moneycontrol, highlights the strategic shift Paytm is undergoing to strengthen its financial position and refocus on its core business.
Paytm entered the Japanese market in 2018 by partnering with PayPay Corporation, a joint venture between SoftBank and Yahoo Japan, to offer QR code-based payment solutions. PayPay has since gained prominence in Japan’s digital payment ecosystem. Last year, the company explored a potential U.S. listing, aiming to capitalize on higher market valuations.
This development follows Paytm’s earlier divestment of its entertainment ticketing platform, Paytm Insider, which it sold to Zomato earlier this year for Rs 2,048 crore. The company’s stock performance has also been noteworthy, hitting a 52-week high on December 5, 2024, after its initial listing on the stock exchange in November 2021.
The potential sale of PayPay stakes reflects Paytm’s continued focus on financial optimization and strategic restructuring, paving the way for future growth in its core markets.
