Paytm to Sell PayPay Stake for $250M in Deal with SoftBank

Paytm's parent company One97 Communications is reportedly close to finalizing a $250 million (approximately ₹2,000 crore) deal to sell its stake in Japan based digital payments firm PayPay Corporation to SoftBank Group. 

This move aligns with Paytm's strategy to divest non-core assets and focus on scaling its core payments business.  

The sale follows Paytm’s recent divestment of Paytm Insider its entertainment ticketing arm for ₹2,048 crore. With this deal, Paytm’s cash reserves could rise to ₹12,000 crore bolstering its growth plans.  

Paytm's association with PayPay dates back to 2018 when it partnered with SoftBank and Yahoo Japan to introduce QR-code-based payments in Japan. While SoftBank previously held a significant stake in Paytm it exited the company entirely in June 2024.  

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Amid regulatory challenges, Paytm has been streamlining operations, focusing on core services, and expanding its offerings. With approvals to onboard new UPI users and continued cost-cutting measures, the company is eyeing growth in the fintech space.  

In the September quarter, Paytm reported a profit of Rs 930 crore supported by gains from its asset sales. 

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Founder and CEO Vijay Shekhar Sharma reaffirmed the company’s commitment to playing a significant role in the UPI ecosystem and leveraging opportunities for financial services growth.

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