Paytm parent entity One 97 Communications has announced that it is selling its stake in Japanese-based payments firm PayPay to SoftBank Vision Fund to for about Rs 2360 crore.

The company has informed the stock exchange that its wholly-owned subsidiary, One97 Communications Singapore (Paytm Singapore), has approved sale of stock acquisition rights (SARs) held in PayPay Corporation for Rs 2,364 crore.

These SARs were acquired by Paytm in September 2020. PayPay started as a joint venture between SoftBank Corp and Yahoo Japan Corporation with Paytm as a technology partner.

Paytm Singapore spokesperson said, "We remain fully committed and will continue to support PayPay's product and technology innovations in future. We are working on introducing new AI-powered features to accelerate PayPay's vision in Japan. The board of Paytm Singapore has approved the sale of the above-mentioned SARs as it has created significant value for the company. The SARs sale net proceeds would fortify the consolidated cash reserves of OCL and help drive future business initiatives, focused on maximizing value creation for shareholders."

The transaction is expected to be closed in December 2024, subject to the satisfactory completion of all corporate approvals and customary closing conditions.

The PayPay stake sale announcement comes few months after Paytm sold its entertainment ticketing business to Zomato in August for Rs 2,048 crore in cash. 

The company reported a consolidated net profit of Rs 928.30 crore in Q2 FY25 as compared with net loss of Rs 290.50 crore posted in Q2 FY24. Revenue from operations was at Rs 1,659.50 crore in September 2024 quarter, down 34.1% YoY.

As of September 2024, Paytm held a cash balance of Rs 9,999 crore.