Paytm has denied reports on the Paytm-Gautam Adani deal that the Adani Group is planning to buy a stake in its parent company, One97 Communications.
According to a report by TOI, Paytm’s founder and CEO, Vijay Shekhar Sharma, met with Adani Group chairman Gautam Adani at his office in Ahmedabad to discuss the deal’s details.
However, Paytm has stated that this news is speculative and that no such discussions have occurred. The company said, “the news item is speculative and the company has not engaged in any discussions in this regard.” Following this, Paytm’s stock reacted to the news.
Fintech Major Denies Reports on Paytm-Gautam Adani Deal
Paytm clarified 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.”
If the Paytm-Gautam Adani Deal were to happen, it would mark Adani’s entry into the fintech industry, putting them in competition with Google Pay, Walmart-owned PhonePe, and Mukesh Ambani’s Jio Financial.
Paytm’s Losses Increase in March Quarter
Paytm’s net loss grew more than three times compared to last year, reaching INR 550.5 crore in the March quarter of the financial year 2023-24, up from INR 167.5 crore in the same period last year. This was the first quarterly report after the Reserve Bank of India (RBI) stopped Paytm Payments Bank from onboarding new users and offering various services, including UPI payments and deposits.
Revenue from operations fell by 2.9% year-on-year to INR 2,267.10 crore, down from INR 2,334 crore in the same period last year, and showed a 20% decline from the previous quarter.
Paytm Faces Challenges, Shares Rise
Paytm has faced significant issues recently, especially with its payments bank and leadership changes. To overcome these challenges, Paytm will need a strategic shift and efforts to regain trust and stability. As the fintech industry evolves quickly, Paytm might need to reassess its business model, streamline operations, and focus on innovation and customer-friendly solutions for sustainable growth and profitability.
Despite these challenges, Paytm shares traded at INR 359.55, 5% higher than the previous close of INR 342.45.
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