Paytm is investing $1 million (Rs 8.7 crore) in Delaware-based Seven Technology LLC, a parent entity of Brazil-based API-first embedded finance startup Dinie.

Paytm parent entity One 97 Communication said that its wholly-owned subsidiary Paytm Cloud Technologies will pick up 25% stake in Dinie -- which enables platforms to provide digital financial services solutions to micro, small and medium-sized enterprises (MSMEs) in Brazil. 

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

"This investment would help in understanding the merchants' business landscape and opportunity in the Brazilian market," the company disclosed in an exchange filing.

Paytm, during its recent quarterly earning on January 20, had mentioned about setting up businesses in UAE, Saudi Arabia and Singapore as part of its international expansion. The company also said it will set up wholly owned subsidiaries (step down subsidiaries) in the said regions, with an initial investment of up to Rs 20 crore per subsidiary.

The acquisition of Dinie, which is expected to be completed within 45 days, is in line with Paytm's global expansion plans.