Paytm to enter Indonesia and Luxembourg; brings Alabbar SPV into UAE unit

Paytm is setting up wholly owned subsidiaries in Indonesia and Luxembourg and is restructuring its UAE unit by bringing in an SPV of Emaar founder Mohamed Alabbar as a 49% shareholder

Fintech platform Paytm is expanding to new markets such as Indonesia and Luxembourg after it incorporated two wholly owned subsidiaries on Monday to be set up in these markets.

 

 The company’s arm Paytm Arab Payments (PAPL) will dilute from a wholly owned step down subsidiary of the parent, to owning a majority 51 per cent stake in the United Arab Emirates (UAE)-based entity through Paytm Cloud Technologies (PCTL).

 

The remaining 49 per cent of PAPL will be owned by Abbar Global Opportunities Holdings (AGOHL) after the fintech firm approved the issuance and allotment of equity shares to AGOHL.

  The company said AGOHL is a Special Purpose Vehicle (SPV) of Mohamed Ali Rashed Alabbar, founder of Emaar Properties.

 

The entry into new international markets and restructuring of its UAE-based unit comes at a time when the company is targeting new markets for future growth across the digital payments and financial services space.

 

“This is in line with the company’s earlier disclosure that it is exploring select new markets for future growth, and bringing its advanced technology across merchant payments and financial services, to international markets,” it said in a statement.

 

PCTL will incorporate entities in Indonesia and Luxembourg, with them becoming its wholly owned subsidiaries.

 

PCTL is a wholly owned subsidiary of One97 Communications, the operator of the Paytm brand.

 

The entities will support the company’s plans to expand the distribution of the company’s merchant payments and financial services stack through strategic partnerships, investments, and/or organic expansion or gaining local licenses.

 

Paytm will pump up to ~25 crore in one or two tranches in each of the entities; Indonesia and Luxembourg.