Paytm’s arm Paytm Cloud Technologies Limited (PCTL) is set to acquire a 25% stake in Delaware-based fintech startup Seven Technology LLC for $1 Mn (around INR 8.7 Cr).

In a regulatory filing, One97 Communications said that the board of its wholly-owned subsidiary, PCTL, at its meeting held on February 3, approved an investment of $1 Mn in Seven Technology LLC for acquisition of 25% stake and execution of transaction documents.

Seven Technology is the parent of Brazil-based fintech platform Dinie Correspondente Bancário e Meios de Pagamento Ltda’s parent, that offers digital financial services 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,” the filing noted.

Following the acquisition announcement, shares of One97 Communications went as high as 5.3% at INR 782.80 apiece during the intraday trade on the BSE today (February 3).

As of 12:05 PM, the stock was up 4.4% at INR 776.40 on the BSE, compared to its previous close of INR 743.60 per share on Saturday (February 1).

Furthermore, the Vijay Shekhar Sharma-led company confirmed that the acquisition will be completed in 45 days.

This development comes weeks after the fintech major Paytm disclosed its plans to in the UAE, Saudi Arabia, and Singapore via PCTL to expand and monetise its tech-enabled payments and financial services in international markets.

Despite facing curbs from the Reserve Bank of India last year, the fintech player seemed to have gained interests from brokerages.

Earlier this month, JM Financial predicted a for Paytm in the near future. Prior to that, Bernstein from INR 750 to INR 1,000, citing Paytm’s improved financial health and innovative product offerings, in November last year.

On the financial front, the fintech giant (PAT) of INR 930 Cr in Q2 FY25 as against a loss of INR 292 Cr in the year-ago period, marking its return to profitability on the back of selling of its movies and events ticketing business to foodtech major Zomato for INR 2,048 Cr in an all-cash deal.

Meanwhile, its revenue from operations fell 34% year-on-year to INR 1,660 Cr in the reported quarter from INR 2,519 Cr in the year-ago period.

Updated 12:25 PM

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