Paytm will Purchase 25% Share in Dinie, a Brazilian Financing Company

According to a regulatory filing, Paytm Cloud Technologies Limited (PCTL), the firm's wholly owned subsidiary, has authorised a $1 million (INR 8.7 crore) investment to purchase a 25% share in Seven Technology LLC, the parent company of the Brazilian integrated finance startup Dinie. Following the deal, Dinie and Seven Technologies will join One97 Communication, the parent company of Paytm, as associate businesses.
The payments company stated in the filing that this investment will aid in comprehending the business environment and opportunities for merchants in the Brazilian market. The purchase supports Paytm's goal of growing its financial services and merchant payments business model globally, especially in developing nations with significant fintech potential. Paytm will make the cash investment, and the agreement should be finalised in 45 days.
Dinie's revenue dropped significantly over the last three years, from BRL 4.01 million (INR 6.11 crore) in 2022 to BRL 357,920 (INR 0.56 crore) in 2024, despite Seven Technology having no independent operations.
Paytm Exploring International Market
In order to utilise its tech-enabled merchant payments and financial services in "similar" international markets, Paytm had discussed opening businesses in the United Arab Emirates, Saudi Arabia, and Singapore during its most recent quarterly earnings on January 20.
The company also sought local licenses and alliances.In addition to investigating other possibilities like organic expansion as well as local licenses, strategic investment, and partnerships in these foreign markets, the board of the company has approved the establishment of wholly owned subsidiaries (step-down subsidiaries) in the aforementioned locations.
With an initial investment of up to INR 20 crore (in tranches) apiece, the subsidiaries were to be created within six months. While discussing the Q3FY25 earnings, chief financial officer Madhur Deora stated that the company is looking to rationalise its other overseas companies, many of which are connected to One97 Communications' legacy business, which is mostly devoted to providing services to telecom enterprises.
The CEO disclosed that the business has numerous direct or step-down subsidiaries in Africa, Southeast Asia, South Asia, and the Middle East. Almost none of them have anything to do with Paytm's primary business; instead, they are related to the former One97 (Communication) company, which offered marketing services to telecom operators. Local subsidiaries were frequently mandated to conduct business in particular areas. The CFO stated, "Brans is looking to reduce the number of these subsidiaries over the next three to six months."
Indian Fintech Testing International Waters
International markets are becoming a greater focus for Indian fintech startups. Razorpay, a payment processing company, is rapidly growing its global footprint. It currently operates in the Middle East and Malaysia and shortly will open in Singapore.
Roughly 10% of Razorpay's total revenue comes from overseas markets. Leading the charge to expand UPI internationally is the National Payments Corporation of India (NPCI). UPI has already been implemented in Bhutan, France, Mauritius, Nepal, Singapore, Sri Lanka, and the United Arab Emirates. Establishing cross-border digital payment networks that enable Indian users worldwide to conduct real-time transactions is the goal of NPCI.
