Merger Talks Begin Early Between Airtel and Paytm Payments Banks
- ByStartupStory | February 25, 2023
According to sources familiar with the matter, telecommunications magnate Sunil Mittal is reportedly looking to acquire a share in Paytm through the integration of his financial services division with the fintech company’s payments bank.
Unnamed sources have revealed that Sunil Mittal is exploring the possibility of merging Airtel Payments Bank with Paytm Payments Bank in exchange for stocks. Additionally, he is reportedly interested in purchasing shares of Paytm from existing shareholders. However, these discussions are in the preliminary stages, and it is not certain whether a deal will be reached between Airtel and Paytm.
Paytm, also known as One97 Communications, has experienced a resurgence in its stock value, rising approximately 40% from its lowest point in November, as it demonstrates indications of becoming profitable.
According to a filing made with the exchange this month, the company has reduced its third-quarter losses as a result of a push to acquire more customers, which has driven up revenue. In an emailed statement, a Paytm spokesperson stated that the company is fully committed to its organic growth path and is not participating in any such negotiations.
Bharti Enterprises, which is overseen by Mittal, has not made any comments on the matter, according to a spokesperson. Paytm, which was previously India’s most valuable startup, has not exceeded its initial public offering (IPO) price of Rs 2,150 since being listed in November 2021 and had the most significant first-year drop among large IPOs in the last decade. SoftBank and Ant Group are among the firm’s supporters.
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