Japanese tech conglomerate SoftBank has further reduced its stake in Paytm’s parent company, One97 Communications, by selling another 2% for a total of INR 950 crore ($114 million). This move comes as SoftBank adjusts its investment portfolio, bringing its shareholding in the Indian fintech giant down to approximately 5%.
According to Moneycontrol, SVF India Holdings (Cayman) Limited, a SoftBank affiliate, undertook a series of disposals between December 19, 2023, and January 20, 2024, breaching the 2% threshold specified in Sebi Takeover regulations during the January 20 transaction.
SoftBank, once holding close to 7% stake in Paytm last year, has been steadily paring down its investment over the past twelve months. In July of the previous year, the conglomerate sold another 2% stake for about $300 million. After the recent sale, SoftBank now holds approximately 5% stake in the fintech major.
Despite the reduction in SoftBank’s stake, Paytm has shown positive financial performance. In Q3 FY24, the company slashed its net loss by 43%, reducing it from INR 392 crore to INR 222 crore compared to the corresponding period last fiscal. Sequentially, the net loss declined by 24% from INR 292 crore in Q2 FY24.
Paytm’s operating revenue experienced a significant increase, reaching INR 2,850 crore in the quarter ending December 2023, marking a 38% rise from INR 2,062 crore in Q3 FY23. The boost is attributed to the rise in gross merchandise volume (GMV), higher device additions, and the growth of its financial services business during the quarter.
In an earnings call last week, Paytm’s CEO Vijay Shekhar Sharma mentioned the company’s focus on adding tech capabilities to its businesses to build a leaner workforce. The company is adopting AI-led automation, resulting in layoffs and increased efficiency.
