SoftBank Cuts Stake in Paytm by 2.2% Amid Challenging Times

SoftBank Group, led by Masayoshi Son, has reportedly reduced its stake in the troubled fintech giant, Paytm, by 2.2%. The sale, which occurred in January, involved more than 1.3 crore shares of One 97 Communications, Paytm’s parent company, being offloaded in the open market, according to sources cited by The Economic Times.

After this transaction, SoftBank, operating through its affiliate SVF India Holdings (Cayman), now holds a diminished 2.83% stake in Paytm, down from the previous 5.01%. It’s worth noting that SoftBank originally held an 18.5% stake in Paytm before the company went public in 2021.

This move by SoftBank precedes the Reserve Bank of India’s (RBI) recent imposition of stringent directives against Paytm, further complicating the company’s already challenging situation. Paytm’s shares have been experiencing a continuous downward trend since its stock market debut in 2021, and the RBI’s directives have contributed to a decline in the company’s share price, closing at Rs 405 apiece on the BSE, reflecting a 0.23% decrease.

Notably, Paytm has witnessed additional shifts in its investor landscape, with Warren Buffet’s Berkshire Hathaway and China’s Alibaba Group, both fully exiting the company in 2023. Even Ant Financial, Alibaba’s subsidiary, has opted to reduce its stake in One 97 Communications.