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By EquityPandit

MARKETS

Paytm Shares Surge 5% on Plans to Acquire Stake in Dinie

After completing the acquisition, Seven Technology and Dinie will become company associate entities.

Shares of One 97 Communications Ltd, the parent company of Paytm, surged more than 5% on 3 February after the company’s wholly-owned subsidiary, Paytm Cloud Technologies Limited, announced plans to acquire a 25% stake in Dine. 

Paytm Cloud Technologies Limited has approved an investment of $1 million to acquire a 25% stake in Seven Technology LLC, the parent company of Brazilian embedded finance startup Dinie. 

After completing the acquisition, Seven Technology and Dinie will become company associate entities. 

In its regulatory filing, the company said, “This investment would help in understanding the merchants’ business landscape and opportunity in the Brazilian market.”

The acquisition supports Paytm’s strategy to expand its merchant payments and financial services business globally, with a particular focus on emerging markets that show strong fintech growth potential.

The transaction is expected to close within 45 days, with Paytm making the investment in cash.

While Seven Technology does not have independent operations, its subsidiary Dinie has experienced a significant revenue decline over the past three years, dropping from BRL 4.01 million (Rs 6.11 crore) in 2022 to BRL 357,920 (Rs 0.56 crore) in 2024.

In its quarterly earnings report on 20 January, Paytm outlined plans to expand into the UAE, Saudi Arabia, and Singapore, aiming to leverage its technology-driven merchant payments and financial services in comparable international markets while pursuing local licenses and partnerships.

The company’s board approved the formation of wholly owned step-down subsidiaries in these regions, considering multiple approaches such as organic expansion, local licensing, strategic investments, and partnerships to establish a presence in these markets.

These subsidiaries are expected to be incorporated within six months, with an initial investment of up to Rs 20 crore per region, distributed in phases.

At 12:23 pm, the shares of Paytm were trading 4.38% higher at Rs 775.70 on NSE. 

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