In a stock exchange filing on Saturday, the Noida-based fintech said that the shares will be transferred to SoftBank Vision Fund 2. Through the deal, PayPay will be valued at 1.06 trillion Japanese yen ($7 billion approximately).
On Friday, Paytm in another stock exchange filing had said that One97 Communications Singapore, the subsidiary entity through which the shares of PayPay were held, had passed a board resolution to undertake this sale.
This comes after Paytm divested its entertainment and ticketing business Paytm Insider to Zomato for Rs 2,048 crore. The PayPay stake sale will add to Paytm’s cash pile.
In the September quarterly results, the company had announced that it has a cash reserve of around Rs 10,000 crore. Responding to analyst queries on the management’s plans with the cash, Madhur Deora, chief financial officer of Paytm, had then said that once the core business becomes cash positive, the Paytm board of directors will take a call on what to do with their reserves.
In a statement to the press on Saturday, Paytm said that the board of Paytm Singapore approved the sale process as its shares have created significant value for the company and the net proceeds would fortify the consolidated cash reserves of OCL and help drive future business initiatives.
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The company posted operational revenue of Rs 1,659 crore and a net loss of Rs 1,648 crore for the quarter ended September 30.
