Paytm’s wholly owned subsidiary, Paytm Cloud Technologies Limited (PCTL), has approved a $1 million (Rs 8.7 crore) investment to acquire a 25% stake in Seven Technology LLC, the parent company of Brazilian embedded finance startup Dinie, according to a regulatory filing.
Following the transaction, Seven Technology and Dinie will become associate entities of One97 Communications, the parent company of Paytm. The acquisition is expected to help Paytm gain insights into Brazil’s merchant business landscape and expand its footprint in international fintech markets.
This strategic investment aligns with Paytm’s global ambitions to scale its merchant payments and financial services business, particularly in emerging markets with strong fintech potential. The deal is expected to be completed within 45 days, with Paytm making the investment in cash.
Despite Dinie witnessing a sharp decline in revenue from BRL 4.01 million (Rs 6.11 crore) in 2022 to BRL 357,920 (Rs 0.56 crore) in 2024, Paytm remains optimistic about the market potential in Brazil.
During its recent quarterly earnings announcement on January 20, Paytm outlined plans to expand into the UAE, Saudi Arabia, and Singapore, leveraging its tech-driven merchant payments and financial services. The company’s board had approved the incorporation of wholly owned subsidiaries in these regions, with an initial investment of up to Rs 20 crore per subsidiary.
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Paytm is also looking to streamline its overseas operations by rationalizing its subsidiaries that are tied to legacy businesses under One97 Communications. These subsidiaries, spread across the Middle East, Southeast Asia, South Asia, and Africa, primarily provide marketing services to telecom operators. This latest move reinforces Paytm’s commitment to strengthening its presence in global fintech markets while optimizing its operational structure to focus on core business growth.
