Paytm’s wholly owned subsidiary, Paytm Cloud Technologies Limited (PCTL), has approved an investment of $1 million (Rs 8.7 crore) to acquire a 25 percent stake in Seven Technology LLC, the parent company of Brazilian embedded finance startup Dinie, a regulatory filing said.
After the transaction, Seven Technology and Dinie will become associate entities of the One97 Communication, the parent company of Paytm .
"This investment would help in understanding the merchants’ business landscape and opportunity in the Brazilian market," the payments company said in the filing.
The acquisition aligns with Paytm’s ambition to expand its merchant payments and financial services business model internationally, particularly in emerging markets with strong fintech potential.
The deal is expected to be completed within 45 days, with Paytm making the investment in cash.
While Seven Technology has no standalone operations, Dinie recorded a sharp revenue decline over the past three years — from BRL 4.01 million (Rs 6.11 crore) in 2022 to BRL 357,920 (Rs 0.56 crore) in 2024.
Paytm plans to rationalise overseas subsidiaries, eyes selective global expansion
International plans
During its recent quarterly earning on January 20, Paytm had mentioned about setting up businesses in UAE, Saudi Arabia and Singapore to leverage its tech-enabled merchant payments and financial services in 'similar' international markets, and seek local licenses and partnerships.
Paytm Cloud to set up subsidiaries in UAE, Saudi Arabia, Singapore to leverage services stack
The firm's board had approved incorporation of wholly owned subsidiaries (step down subsidiaries) in the said regions, exploring various options including organic expansion as well as local licenses, strategic investment and partnerships in these international markets.
The subsidiaries were to be incorporated within six months, with an initial investment of up to Rs 20 crore (in tranches) each.
At the same time, the firm is looking to rationalise its other overseas subsidiaries, many of which are tied to legacy One97 Communications' legacy business, mostly related to providing services to telecom businesses, chief financial officer Madhur Deora said while discussing the Q3FY25 earnings.
"We have many subsidiaries, direct or step-down, in the Middle East, Southeast Asia, South Asia, and Africa. Nearly none of them relate to Paytm's core business but rather to the old One97 (Communication) business, providing marketing services to telecom operators. In many cases, local subsidiaries were required to operate in those regions. Over the next three to six months, we’ll look to reduce the number of these subsidiaries," the CFO said.
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