Paytm arm acquires 25% stake in Seven Technology; shares soar nearly 5%

One 97 Communications, the parent company of Paytm, on Monday acquired a 25% stake worth ₹8.7 crore in Seven Technology LLC through its arm Paytm Cloud Technologies.

On BSE, shares of the fintech firm were trading at ₹776.65 a piece, surging 4.44% during the intraday trade. The market capitalisation of the company stood at ₹49,497.9 crore. 

Seven Technology LLC is the parent company of Dinie Correspondente Bancário e Meios de Pagamento Ltda. (“Dinie”), Brazil-based API-first embedded finance start-up.

Dinie enables digital/ e-commerce platforms to provide digital financial services solutions to micro, small, and medium-sized enterprises (MSMEs) in Brazil. “This investment would help in understanding the merchants’ business landscape and opportunity in the Brazilian market,” Paytm said in a regulatory filing on February 3.

Seven Technology has no operations on a standalone basis and the aforesaid business is carried out through its 100% subsidiary, Dinie.

Post-consummation of the transaction, Seven Technology LLC and Dinie will become associate entities of the Company.

The Paytm arm plans to complete the acquisition in the next 45 days.

One 97 Communications, Paytm's operator, narrowed consolidated net losses to ₹208.3 crore in the December quarter of the current fiscal year. In the year-ago period, the net loss stood at ₹219.8 crore.

Revenue from operations declined 35.8% to ₹1,827.8 crore as compared to ₹2,850.5 crore in the corresponding period last fiscal.

The company said revenue from payment services stood at 1,059 crore, up 8% quarter on quarter (QoQ). Financial services revenue climbed 34% QoQ to ₹502 crore.

Paytm's merchant subscriber base for devices has grown to 1.17 crore as of December 2024, an addition of five lakh QoQ.

On international expansion plans, Paytm after its Q3 results has said it believes that its technology-led merchant payments and financial distribution business has the potential for expansion in similar international markets.