The owner of the Paytm brand, One97 Communications, received a $1.5 billion tranche from Softbank in 2017.
According to people with knowledge of the situation, Japan's Softbank investment division Softbank Vision Fund left Paytm in the June quarter at a loss of almost $150 million.
In 2017, One97 Communications, the company that owns the Paytm brand, received a roughly $1.5 billion in tranches from Softbank.
"Softbank lost between 10% and 12% of its value when it left Paytm. About $150 million has been lost overall, according to one of the sources.
A little over 18.5 percent of Paytm was owned by Softbank before to the company's 2021 IPO. It owned 1.2% of the company via SVF Panther (Cayman) Ltd. and 17.3% through SVF India Holdings (Cayman) Ltd.
One 97 Communications, Ltd.
During the IPO, SVF Panther sold its whole interest for Rs 1,689 crore, or around $225 million.
"Softbank said that it would leave Paytm within 24 months following the IPO. The withdrawal followed Softbank's original intention. But at that point, the business did expect a loss," an other person said.
Paytm shares were purchased by Softbank at an average of around Rs 800 each.
The Paytm share price has not yet reached its issue price of Rs 2,150 per share, having dropped by 9% to Rs 1,955.
Following the Reserve Bank of India's (RBI) decision to prohibit its affiliated company Paytm Payments Bank Ltd (PPBL) from processing transactions, the share price of Paytm fell even further. On May 9, it fell to an all-time low of Rs 310.
In the fourth quarter of 2023–2024, Paytm revealed that its losses had increased to Rs 550 crore as a result of the suspension of operations pertaining to its payments bank.
Due to future operational concerns, such as the unpredictability of further regulatory developments, the firm wrote down a Rs 227 crore investment for a 39% interest in PPBL during the reporting quarter.
The company's loss for the year ending March 31, 2024, decreased to Rs 1,422.4 crore. In FY23, Paytm reported a loss of Rs 1,776.5 crore.
Around seven months ago, billionaire Warren Buffet's Berkshire Hathaway Inc. also left Paytm by selling its shares at a discount to the purchase price.
According to an official document, the corporation paid Rs 1,279.7 per share, or an overall value of Rs 2,179 crore, to purchase a 2.6% interest in Paytm.
The transaction value in November amounted to Rs 1,370.63 crore after the shares were sold for an average price of Rs 877.29 each.
On Friday, Paytm's stock ended the day at Rs 467.25 per share.
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