Paytm to Acquire E-commerce Startup Bitsila Amid RBI Crackdown on Payments Bank

• ByStartupStory     |    February 9, 2024

Paytm is set to acquire e-commerce startup Bitsila amidst the crisis gripping its subsidiary Payments Bank following the Reserve Bank of India (RBI) crackdown. The deal is currently in advanced stages and will likely close in the coming week, as reported by Moneycontrol. Founded by Dasharatham Bitla and Sooryah Pokkali in 2020, Bitsila is a Bengaluru-based seller-side platform for transactions on the Open Network for Digital Commerce (ONDC).

The Vijay Shekhar Sharma-led firm is already a buyer app on the ONDC. With this acquisition, Paytm aims to deepen its reach within the ONDC, according to the report. Paytm has faced scrutiny after the central bank stopped its subsidiary from accepting new deposits after February 29, citing ‘persistent non-compliance’ by Paytm Payments Bank. However, the RBI clarified that the regulatory action is against Paytm Payments Bank and the Paytm app will not be affected.

“Just one clarification, this particular action is against Paytm Payments Bank and not to be confused with Paytm App…App is not impacted by this action,” RBI Deputy Governor Swaminathan J said in the media interaction after the bi-monthly Monetary Policy Committee (MPC) meeting. Responding to the RBI clarification, a Paytm spokesperson told PTI, “We assure our users and merchant partners that the Paytm app remains fully operational, and our services are unaffected.”

“We assure our merchant partners that Paytm QR, Soundbox, and card machines will continue to work as always. Our dedication to providing seamless payment solutions and promoting financial inclusion across India remains as strong as ever,” the spokesperson added.

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