Paytm Cloud to acquire 25% stake in Brazil's Seven Technology for $1 mn

Following the completion of the transaction, Seven Technology and Dinnie will become associate entities of One97 Communications (OCL), the parent company of Paytm

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Paytm Cloud Technologies, the wholly owned subsidiary of fintech firm Paytm, is set to acquire a 25 per cent stake in a Brazil-based embedded finance firm Seven Technology for $1 million. 

 

The acquisition of a stake in Seven Technology will enable the company to understand the merchants’ business landscape in the Brazilian market, Paytm said. 

 

The company, incorporated in Delaware, is a parent company of Dinnie which enables digital and e-commerce platforms to provide financial services solutions to micro, small and medium-sized enterprises (MSMEs) in Brazil. 

 

Following the completion of the transaction, Seven Technology and Dinnie, would become associate entities of One97 Communications (OCL), the company which operates Paytm brand. 

 

“We believe that our technology-led merchant payments and financial services distribution business model in India has the potential for expansion in similar international markets,” Paytm said. 

 

The latest investment in a foreign company aimed at targeting an overseas market comes weeks after Paytm sold its stake in a Japanese company for $250 million.

 

One97 Communications Singapore approved the sale of Stock Acquisition Rights (SARs) held by Japan-based PayPay Corporation last year. Paytm’s Singapore unit had acquired these SARs in September 2020.

 

Paytm CEO Vijay Shekhar Sharma had hinted that merchant acquisition and payment facilitation in new markets were one of the key growth areas for the firm during the company’s analyst call last month. 

 

The company has plans to expand its operations globally with new subsidiaries in the UAE, Saudi Arabia, and Singapore. 

 

Paytm narrowed its losses to Rs 208.3 crore in the third quarter of financial year 2025 (Q3FY25), down from Rs 219.8 crore in Q3FY24. 

 

The loss follows a profitable September quarter, when the company reported a profit of Rs 928.3 crore, driven by the sale of its movie and ticketing business to Zomato.

 

The Noida-based company’s revenue declined 35.9 per cent to Rs 1,827.8 crore in the quarter from Rs 2,850.5 crore in the corresponding quarter last year. Sequentially, revenue rose 10.1 per cent from Rs 1,659.5 crore in Q2FY25.