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SoftBank has sold its remaining 1.4% stake in Paytm, marking its exit from the Indian company.
This follows its recent departure from another Indian venture, PB Fintech, the parent company of PolicyBazaar.
Post SoftBank's exit, hedge fund Treeline and UBS Principal Capital Asia upped their shares in Paytm, though overall foreign investment in the company dipped by 2%.

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SoftBank had been offloading stake since November 2022

SoftBank cuts ties with Paytm, sells remaining 1.4% stake

By Akash Pandey

Jul 13, 2024

06:20 pm

What's the story

Japan's SoftBank has fully divested from One97 Communications, the parent company of fintech giant Paytm. The latest shareholding data reveals that SVF India Holdings (Cayman) Limited, a SoftBank subsidiary, sold its remaining 1.4% stake in Paytm. This move concludes a series of regular offloads by SoftBank since November 2022, reducing its initial 18.5% stake to just 1.4% by March 2024.

Exit strategy

SoftBank's recent divestment from Indian ventures

This divestment follows closely on the heels of SoftBank's full exit from another Indian venture, PB Fintech, which is the parent company of insurance marketplace PolicyBazaar. Initially, SoftBank had invested nearly $200 million in PB Fintech. Reports indicate that the Japanese investor earned around $650 million in returns on its total investment in the insurance aggregator.

Information

New stakeholders emerge following SoftBank's exit

Following SoftBank's departure, Treeline, a Singapore and Hong Kong-based hedge fund, and UBS Principal Capital Asia increased their shareholding in Paytm to 1.18 and 1.08%, respectively. Despite this, the overall Foreign Direct Investment (FDI) shareholding saw a decline of 2% from 39.77 to 37.77%.