SoftBank Sells Another 2% Stake In Paytm, Nets Rs 950 Crore

Through open market operations over the last month, SoftBank has sold an additional 2 percent stake in One97 Communications, the parent company of Paytm, its most substantial listed investment in India.

Following the recent sale, the Japanese investor now holds a reduced stake of approximately 5.06 percent.

Also Read: Paytm Q3 Losses Narrow to Rs 221.7 Crore, Revenue Up 38% YoY

“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 December 19, 2023 and January 20, 2024, with the disposal on January 20, 2024 breaching the 2 percent threshold specified in Regulations 29(2) of the Sebi Takeover regulations,” Moneycontrol quoted the company as saying on January 24.

The investor, which possessed nearly a 7 percent stake in the fintech giant last year, sold 0.55 percent in December and an additional 1.4 percent in January. This move coincided with a 20 percent surge in Paytm shares over the past month.

The recent sale of a 2 percent stake resulted in an approximate revenue of Rs 950 crore.

In the third quarter ending December 2023, domestic retail investors have sequentially raised their stake in Paytm from 8.28 percent to 12.85 percent.

The share of domestic institutions, potentially acquiring the stake previously held by Japanese investors, has increased from 4.06 percent to 6.06 percent.

For the third quarter ending December 2023 (Q3FY24), fintech reported a 38 percent jump in consolidated revenue at Rs 2,850 crore, while narrowing down losses to Rs 222 crore.

Beyond Paytm

In addition to the gradual sale of Paytm stakes over the past year, SoftBank’s venture capital fund, SVF Growth (Singapore) Pte Ltd, concluded its exit from the online food delivery platform Zomato, securing approximately Rs 1,125 crore.

According to a Moneycontrol report, SoftBank had landed Zomato shares after the platform acquired Blinkit in 2022. The lock-in period of 12 months for these shares expired in August 2023, prompting SoftBank to initiate the offloading process.

According to an ET report, the investor finalised its departure from PB Fintech by divesting its remaining stake in a mid-December transaction, realising a 3X return of approximately Rs 914 crore.