One97 Communications Singapore, Paytm subsidiary, sold its stock acquisition rights (SARs) in Japanese digital payments startup PayPay Corporation

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PayPay has been sold to SoftBank's Vision Fund 2 for INR 2,364 crore ($279.19 million)

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PayPay was launched in 2018 as a collab between Softbank, Yahoo Japan, and Paytm. It provides smartphone payment services through barcodes (QR Codes)

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The Tokyo-based PayPay corporation boasts a user base of 65 million. It will be valued at $7.06 billion after the acquisition

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Paytm’s subsidiary board approved the selling of the SARs because it added significant value to the company

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Paytm's cash reserves would be boosted by INR 2,364 crore, which it plans to use to fuel future business efforts

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It's worth noting that the share sale is around 12% higher than the $250 million earlier indicated by reports yesterday

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Paytm held SARs in PayPay because it was a key figure when it was launched. As of March 31, 2021, Paytm had SARs worth 7.2% of PayPay's equity

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This will be Paytm's second cash reserve rise this fiscal year. In August, it sold Paytm Insider to Zomato for $241.8 million (INR 2,048 crore)

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Paytm shares closed at INR 975.80 in Friday’s trading session, 2.02% higher than the previous closing

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