Paytm, a SoftBank-backed Indian digital payments startup, could likely take a 7% stake in Japan’s PayPay, a regulatory filing showed.
The news comes almost two years after Paytm was given the call option to convert into shares.
Masayoshi Son-led SoftBank, which owns about 20% stake in Paytm’s parent One97 Communications, made the disclosure on Wednesday along with its quarterly earnings. SoftBank also owns a 90% stake in PayPay.
Paytm did not respond to a request for comment. The news was first reported by The Economic Times.
Launched in 2018 and led by Nakayama Ichiro, PayPay is a cashless payment service run by a joint venture of SoftBank and Yahoo Japan, with Paytm as the technology partner. It has a network of over 36 million users and more than 1,000 employees.
Earlier in the day, The Economic Times said that Japanese conglomerate SoftBank had transferred close to 40% shareholding in mobile ad services platform InMobi to its Softbank Vision Fund 2.
SoftBank has emerged as one of the most prominent investors in Indian tech startups.
Over the years, it has invested in many firms including Delhivery, Grofers, Ola, Paytm, Policybazaar and Oyo through its $100 billion Vision Fund.
In November 2019, One97 Communications raised $1 billion from new and existing investors including SoftBank Group in a move that valued Paytm at $16 billion.
Paytm, which began as a service for people to top up their mobile phones, offers a digital payment platform for merchants, money transfers and bill payments across India. Its lending businesses include credit cards, personal loans and merchant cash loans in partnership with lenders.
Its shareholders include SAIF Partners, Berkshire Hathaway, T Rowe Price and Discovery Capital.
