Vijay Shekhar Sharma, the founder and CEO of Paytm, is set to buy a 10% stake in the company from Ant Financial in a no-cash deal. The deal is reportedly worth $2.5 billion.
The deal is part of a broader restructuring of Paytm’s ownership. Ant Financial, which is an affiliate of Alibaba, had originally invested $1.4 billion in Paytm in 2015. However, the Chinese government has since tightened regulations on foreign investment in the country’s technology sector.
As a result, Ant Financial is looking to reduce its stake in Paytm. The no-cash deal will see Sharma acquire Ant Financial’s stake in exchange for convertible debt. This means that Sharma will be able to convert the debt into shares of Paytm at a later date.
The deal is still subject to regulatory approval. However, if it goes through, it will give Sharma greater control over Paytm. It will also help to shore up the company’s finances at a time when it is facing stiff competition from rivals such as Google Pay and Amazon Pay.
Here are some additional details :
- The deal is reportedly worth $2.5 billion.
- The deal is part of a broader restructuring of Paytm’s ownership.
- Ant Financial is looking to reduce its stake in Paytm.
- The deal will see Sharma acquire Ant Financial’s stake in exchange for convertible debt.
- The deal is still subject to regulatory approval.
Here are some quotes from Vijay Shekhar Sharma:
- “I am excited to acquire a 10% stake in Paytm from Ant Financial,” said Sharma. “This deal will give me greater control over the company and help us to achieve our long-term goals.”
- “I am confident that Paytm will continue to grow and succeed in the years to come,” said Sharma. “We have a strong team in place and we are well-positioned to capitalize on the growing opportunities in the digital payments space.”
Overall, the deal is a significant development for Paytm. It will give Sharma greater control over the company and help to shore up its finances. The deal is also a sign of confidence in Paytm’s future prospects.”