SoftBank offloads another 2% stake in Paytm; reduces shareholding to 5.06%

MUMBAI: SoftBank has offloaded an additional 2% stake in Paytm, reducing its shareholding in the Noida-based fintech firm to 5.06%, the company said in a recent stock exchange filing. SoftBank which has invested over $1 billion into Paytm held about 18% stake in the firm at the time of its initial public offering (IPO) in 2021 and was one of its largest shareholders.
The Japanese investment giant which bets heavily on tech companies and has backed a clutch of Indian unicorns like Ola Electric, Oyo and Swiggy has been paring its stake in local startups. Recently, it fully exited PB Fintech which runs Policybazaar and Zomato.
SoftBank’s affiliate SVF India Holdings (Cayman) sold 12.7 million Paytm shares through open market transactions between December 19, 2023 and January 20, 2024, the filing said. In November, Warren Buffett’s Berkshire Hathaway had exited Paytm by selling its 2.46% stake in the startup.
Earlier this month, Paytm said that domestic investors have been increasing stake in the company with mutual funds having increased their shareholding in the firm to 4.99% as of December quarter from 2.79% in Q2FY24. Retail investors also increased their shareholding to 12.8%, the company said.
Last week, Paytm reported a narrowing of losses to Rs 221 crore on a consolidated basis for the quarter ended December 2023. Revenue from operations during the quarter increased to Rs 2,850 crore from Rs 2,062 crore posted in the year ago period, recording a year-on-year rise of 38%, helped by growth in subscription revenues and payment business. Share price of Paytm closed at Rs 752.70 apiece on the BSE on Wednesday, down 0.36%.