hive off its payment aggregator business into a new subsidiary. Accordingly, the company is set to seek the approval of its shareholders at an extraordinary general meeting scheduled to be held later this month.
“To consider and approve transfer of Payment Aggregator business to Paytm Payments Services Limited, a wholly owned subsidiary of the Company, to comply with Reserve Bank of India guidelines, being considered as sale of undertaking,” notice sent to shareholders read. The guidelines of the Reserve Bank of India (RBI) specify that after obtaining its license, payment aggregators (PAs) should be regulated and run by a separate company.
Back in 2017, Paytm became India’s first payment app to cross over 100 million app downloads. Now, the company provides digital and payment services to 333 million consumers and over 21 million merchants. The new entity, which will include Paytm’s online payment gateway business, is currently valued between ₹2.75 billion and 3.5 billion. The amount is expected to be settled to OCL in five equal instalments. In the 2020/21 financial year, e-commerce company reported gross merchandise value of over ₹4 trillion. It has already filed draft papers with Securities and Exchange Board of India (SEBI) for the launch of its ₹166 billion-IPO in October.
