SoftBank offloads 2% stake in Paytm for Rs 980 cr
Mumbai: Japanese investor SoftBank divested a 2% stake in One 97 Communications, the parent company of fintech firm Paytm.
SVF India Holdings (Cayman) Ltd, an entity affiliated with SoftBank, has been gradually reducing its ownership in the company by selling shares in the open market in recent months.
Following the sale of this 2% stake, SoftBank's overall shareholding has decreased to 5.06%, compared to its 13.24% stake in February 2023.
The sale of this stake has generated approximately Rs 950 crore for SoftBank.
"SVF India Holdings (Cayman) Limited has disposed of an aggregate of 12,706,807 equity shares of One97 Communications Ltd in a series of disposals undertaken between 19 December 2023 and 20 January 2024, with the disposal on 20 January 2024 breaching the 2 percent threshold specified in Regulation 29(2) of the Sebi Takeover Regulations," the company said in an exchange filing on Tuesday.
As of December 2023, foreign institutional investors (FIIs) have increased their ownership stake in Paytm to 63.72%, up from 60.92% in the second quarter of financial year 2024 (Q2FY24). Concurrently, domestic investors have witnessed a growth in their stake from 4.06% in Q2FY24 to 6.06% in Q3FY24.
The Noida-based company's financial performance improved, with its consolidated net loss narrowing down to Rs 221.7 crore in the third quarter of financial year 2024 (Q3FY24), compared to a loss of Rs 392 crore in the third quarter of FY23. Sequentially, the company reduced its loss from Rs 291.7 crore in Q2 FY24.
In terms of revenue, Paytm's operations recorded a year-on-year increase of 38.2%, reaching Rs 2,859.5 crore. On a quarter-on-quarter basis, revenue showed a 13% growth from Rs 2,518.6 crore in Q2.
Particularly, Paytm's payment service business added Rs 1,730 crore in revenue during Q3FY24, marking a 13.5% increase from Rs 1,524 crore in Q2FY24 as a result of an uptick in the gross merchandise value (GMV) and higher subscription revenues.
Comparing year-on-year figures, revenue from payment services surged by 45%, rising from Rs 1,197 crore in Q3FY23. The company's payments profitability also witnessed a substantial 63% year-on-year increase, reaching Rs 748 crore.
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