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Paytm Singapore, a wholly-owned subsidiary of Paytm, has got approval from its Board of Directors to sell all its stock acquisition rights in Japan’s PayPay to Softbank Vision Fund 2 for $279.2 million (Rs 2,364 crore). It had earlier invested in PayPay in 2018.

The Japanese payments company started as a joint venture between SoftBank Corp and Yahoo Japan Corporation with Paytm as a technology partner. At that time, SoftBank was one of Paytm’s largest shareholders.

Paytm Singapore spokesperson said, “We are grateful to Masayoshi-san and the PayPay team for giving us the opportunity to together create a mobile payment revolution in Japan. We remain fully committed and will continue to support PayPay’s product and technology innovations in future. We are working on introducing new AI-powered features to accelerate PayPay’s vision in Japan.”

The net proceeds from the stock acquisition rights sale would fortify the consolidated cash reserves of Paytm parent One97 Communications and help drive future business initiatives, focused on maximising shareholders’ value creation, the company said in a statement.

As of September 2024, Paytm held a cash balance of Rs 9,999 crore.

The PayPay stake sale would be the second major monetisation by the Paytm parent this year, which sold its entertainment ticketing business to Zomato in August for Rs 2,048 crore in cash.

The fintech company reported a profit of Rs 930 crore in Q2 FY24 compared to the loss of Rs 840.1 crore in the previous quarter, owing to the gains it received from the sale of its ticketing business.

One 97 Communications saw its revenue from operations rise 10.51% in Q2 FY24 to Rs 1,659.5 crore from Rs 1,501.6 crore in Q1 FY24.

In Q2 FY23, the company reported Rs 2,518.6 crore in revenue from operations and a loss of Rs 291.7 crore.