Paytm founder and CEO Vijay Shekhar Sharma reportedly met Adani at his office in Ahmedabad to finalise the contours of a deal
Discussions between Adani and Sharma have been ongoing, culminating in a meeting at Adani Corporate House in Ahmedabad
If the deal is successfully negotiated, it will mark the ports-to-airports conglomerate’s entry into the fintech industry
Fintech major Paytm
has denied recent reports that the Adani group is considering acquiring a stake in its parent entity One97 Communications.
As per TOI’s report, Paytm founder and CEO Vijay Shekhar Sharma met the Adani Group chairman Gautam Adani at his office in Ahmedabad to finalise the contours of the deal.
The company, however, denied the news report saying “the news item is speculative and the company has not engaged in any discussions in this regard,” One97 Communication said in an exchange filing.
“With reference to the captioned subject (Adani in talks with Sharma to acquire stake in Paytm), we hereby clarify that the abovementioned news item is speculative and the Company is not engaged in any discussions in this regard. We have always made and will continue to make disclosures in compliance with our obligations under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015,” the filing said.
If the deal is successfully negotiated, it will mark the ports-to-airports conglomerate’s entry into the fintech industry, positioning Adani against competitors such as Google Pay, Walmart-owned PhonePe, and Mukesh Ambani’s Jio Financial.
Paytm’s net loss widened over 3X on an year-on-year basis to INR 550.5 Cr in the March quarter (Q4) of the financial year 2023-24 (FY24) from INR 167.5 Cr reported in the year-ago period.
This was the first quarterly result of Paytm after the Reserve Bank of India (RBI) barred Paytm Payments Bank from onboarding new users and from offering various services, including UPI payments and deposits.
The revenue from operations decreased by 2.9% YoY to INR 2,267.10 Cr, compared to INR 2,334 Cr in the same period last year, and a 20% decline from the previous quarter.
Paytm has encountered significant challenges lately, particularly with its payments bank and leadership turnover. Navigating these issues will indeed require a strategic shift and a concerted effort to regain trust and stability.
With the fintech landscape evolving rapidly, Paytm will likely need to reassess its business model, streamline operations, and perhaps focus on innovation and customer-centric solutions to pave the way for sustainable growth and profitability.
Paytm shares were trading at INR 359.55, 5% higher as compared to previous close at INR 342.45.
