Mobility aggregator Jugnoo to buy back Paytm’s stake for Rs 23.5 crore

Representational image

Chandigarh-based mobility aggregator Jugnoo is repurchasing Paytm’s 12.75 percent stake in the company for Rs 23.52 crore, as part of a broader effort to consolidate ownership and strengthen operational control.

The transaction is expected to be completed by March 31, 2025.

“Jugnoo is repurchasing Paytm’s stake at a valuation of Rs 23.52 crore, and the transaction is expected to be completed by March 31, 2025. Additionally, we are offering an exit to other investors who wish to liquidate their holdings at the same valuation provided to Paytm,” Samar Singla, co-founder of Jugnoo told Moneycontrol.

Also read: Online rickshaw aggregator Jugnoo forays into taxi biz

Founded in 2014 by Singla and Chinmay Agarwal, Jugnoo started as an auto-rickshaw aggregation platform and later expanded into last-mile logistics and hyperlocal deliveries. The company has received a total investment of Rs 42.79 crore from Paytm so far.

Industry sources said that this sale is happening at a much lower valuation, and Paytm is selling its entire stake. Paytm is not immediately available to comment, and the copy will be updated once we receive it.

As per data platform Tracxn, Jugnoo has raised around $16.5 million in funding till date.

To support its next phase of growth, Jugnoo has also announced a Rs 10 crore rights issue, allowing existing shareholders to invest further. The company aims to use these funds to expand operations and enhance technological capabilities in mobility and logistics.

Founders often choose to buy back stakes from investors to regain control over their company's decision-making, streamline operations, and align the business with their long-term vision.

“In Jugnoo’s case, reclaiming Paytm’s 12.75 percent stake allows the company to operate independently without external shareholder influence, giving it greater flexibility in strategic and financial planning,” an industry source told Moneycontrol.

With the buyback, Jugnoo’s leadership may see this as an opportunity to strengthen ownership and chart its own course in the competitive mobility and logistics sector.

“This move enables us to consolidate a majority stake in the company, ensuring greater operational control and flexibility in decision-making,” Singla said.

The stake repurchase comes at a time when Paytm, operated by One97 Communications, is grappling with regulatory challenges. The Reserve Bank of India (RBI) recently imposed restrictions on Paytm Payments Bank, citing non-compliance with regulatory norms.

The fintech major has since been realigning its business strategies, focusing on its core payments and lending businesses while exiting non-strategic investments.

Also, read: A year after Paytm Payments Bank ban, compliance and merchant focus spark recovery hopes