Softbank exits Paytm at loss of around USD 150 million
Softbank investment arm Softbank Vision Fund exited from Paytm in the June quarter at a loss of around USD 150 million, sources aware of the development said. Softbank invested about USD 1.5 billion in One97 Communications — the owner of Paytm brand — in tranches in 2017.
«Softbank has exited Paytm at a loss of 10-12 per cent. The total loss is around USD 150 million,» one of the sources said.
Softbank held around 18.5 per cent stake in Paytm before the company's initial public offering (IPO) in 2021. It held a 17.3 per cent stake through SVF India Holdings (Cayman) Ltd and 1.2 per cent through SVF Panther (Cayman) Ltd.
SVF Panther sold its entire stake during the IPO for Rs 1,689 crore, about USD 225 million.
«Softbank announced that it will exit Paytm in 24 months from the time of the IPO. The exit was in line with Softbank's plan. However, the company did anticipate loss at that time,» another source said.
Softbank had acquired Paytm shares at an average price of about Rs 800 apiece.
Paytm share price was listed at Rs 1,955, lower by 9 per cent, and has not matched its issue price of Rs 2,150 apiece to date.
The share price of Paytm plummeted further after the Reserve Bank of India (RBI) banned its associate firm Paytm Payments Bank Ltd (PPBL) from carrying out transactions. It touched an all-time low of Rs 310 on May 9.
Paytm reported widening of losses to Rs 550 crore in the fourth quarter of 2023-24 following the ban on transactions related to its payments bank.
The company during the reported quarter
