Gautam Adani in Talks for Stake Acquisition in Paytm, Eyeing Fintech Sector Entry

Gautam Adani in Talks for Stake Acquisition in Paytm, Eyeing Fintech Sector Entry

In a significant development in the fintech industry, Gautam Adani, the chairman of the Adani Group, is reportedly in discussions to acquire a stake in One 97 Communications, the parent company of Paytm. According to a report in the Times of India, talks between Adani and Vijay Shekhar Sharma, the founder and CEO of Paytm, have been ongoing for a while, with a recent meeting held on May 28 in Ahmedabad to finalize the deal’s contours.

If the deal materializes, the Adani Group would make its foray into the competitive fintech sector, directly competing with established players like Google Pay, PhonePe, and Mukesh Ambani’s Jio Financial.

Currently, Vijay Shekhar Sharma holds approximately 19% stake in One 97 directly and an additional 10% through Resilient Asset Management, a foreign entity. Notable shareholders of One 97 include Saif Partners (15%), Antfin Netherlands (10%), and the company’s directors (9%). With a market capitalization of ₹21,773 crore, One 97 evolved from a recharge platform to a comprehensive payment and merchant acquiring business, including Paytm Payments Bank (PPBL), which faced regulatory actions from the Reserve Bank of India (RBI).

The report also indicates that alongside discussions with Adani, Sharma is engaging with funds from West Asia to bring them on board as investors in One 97.

Binoy Parikh, the executive director of Katalyst Advisors, commented on the potential deal, stating, “With the financial strain and regulatory bottlenecks that Paytm is facing, aligning with Adani Group would provide the robust financial backing needed to address regulatory compliance issues and stabilize its operations. For Adani, integrating Paytm’s established digital payments platform into their diverse business portfolio would enhance their digital footprint and accelerate their ambition to become a leading player in the fintech space.”

The talks between Adani and Paytm’s leadership highlight the ongoing strategic shifts and collaborations within India’s rapidly evolving fintech landscape, signaling potential transformations in the industry’s competitive dynamics and market offerings.

Sources By Agencies

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