Paytm Cloud Technologies Ltd (PCTL), a subsidiary of fintech major Paytm, has established a wholly owned subsidiary in the UAE named Paytm Arab Payments LLC, as per a recent stock exchange filing. The board has approved an AED 8 million (~$2.1 million or ₹18.41 crore) investment to acquire 80,000 equity shares in the new entity.
The purpose of the new subsidiary is to expand and distribute Paytm’s tech-driven merchant payments and financial services in the UAE. The company confirmed that no regulatory approvals were required for this incorporation.
This move follows Paytm’s announcement in January about its plans to expand internationally by setting up subsidiaries in the UAE, Saudi Arabia, and Singapore. The company is exploring both organic and inorganic growth avenues, including strategic partnerships, investments, and local licensing, to enhance its global footprint.
The international push aligns with Paytm’s broader strategy to scale its digital payments ecosystem globally, especially after facing regulatory restrictions last year from the Reserve Bank of India (RBI) on its Payments Bank operations.
Recently, Paytm launched an upgraded Soundbox device with a digital display for instant visual payment confirmations. Meanwhile, its investment subsidiary Paytm Money received SEBI approval to operate as a research analyst, signaling entry into the wealth management segment.
Additionally, the company is seeking a payment aggregator license through Paytm Payment Services Ltd (PPSL). These initiatives reflect Paytm’s renewed focus on core digital payment offerings and efforts to diversify its revenue streams.
CEO Vijay Shekhar Sharma has stated that the company is on track to achieve profitability by Q1 of FY2025-26. In Q3 FY25, Paytm narrowed its net loss by 6% to ₹208.5 crore, while revenue from operations fell 36% to ₹1,827.8 crore, compared to the previous year.
Paytm’s stock closed the day down 0.72% at ₹864.30 on the BSE.
