According to media reports, Softbank Vision Fund, Japan’s investment arm, exited Paytm in the June quarter, incurring a loss of approximately USD 150 million. Softbank invested around USD 1.5 billion in One97 Communications, the owner of the Paytm brand, in 2017 through multiple tranches.
Media reports state that Softbank held around an 18.5 per cent stake in Paytm before the company’s initial public offering (IPO) in 2021. This included 17.3 per cent through SVF India Holdings (Cayman) Ltd and 1.2 per cent through SVF Panther (Cayman).
According to media reports, SVF Panther sold its entire stake at the IPO for Rs 1,689 crore, or approximately USD 225 million. Softbank had declared its intention to exit Paytm within 24 months following the IPO, a move that was consistent with its plans, although it anticipated a loss at the time.
Softbank purchased Paytm shares at an average price of around Rs 800 per share, according to media reports. Paytm’s share price was listed at Rs 1,955, down 9 per cent, and has yet to match its issue price of Rs 2,150 per share.
Paytm’s losses increased to Rs 550 crore in the fourth quarter of 2023-24 due to the prohibition on payments bank transactions, according to media reports. The company also wrote off a Rs 227 crore investment for a 39 per cent share in PPBL due to future risks associated with its business activities, such as the uncertainty of new regulatory developments.
An official document cited by media reports states that Softbank acquired a 2.6 per cent stake in Paytm for Rs 1,279.7 per share, totaling Rs 2,179 crore.
