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Paytm Acquires 25% Stake in Brazil-Based Seven Technology LLC for USD 1 Million

Paytm Invests USD 1 Million for 25% Stake in Brazil’s Seven Technology LLC

Paytm Cloud Technologies Limited (PCTL), a wholly-owned subsidiary of One 97 Communications Limited (Paytm), has announced an investment to acquire a 25% stake in Seven Technology LLC for USD 1 million (approximately INR 8.70 crore). Seven Technology LLC is the parent company of Dinie Correspondente Bancário e Meios de Pagamento Ltda. (“Dinie”), a Brazil-based API-driven embedded finance startup catering to MSMEs.

Key Highlights of the Investment:

  • Target Company: Seven Technology LLC, the holding company of Dinie.
  • Dinie’s Business Model: Enables digital and e-commerce platforms to offer financial services to micro, small, and medium-sized enterprises (MSMEs) in Brazil.
  • Investment Amount: PCTL is investing USD 1 million (INR 8.70 crore) for a 25% stake in Seven Technology LLC.
  • Post-Acquisition Status: Seven Technology LLC and its subsidiary, Dinie, will be considered associate entities of Paytm.
  • Strategic Objective: Paytm aims to leverage this investment to explore merchant business opportunities in Brazil and expand its technology-driven financial services model in international markets.
  • Regulatory Approvals: No government or regulatory approvals are required for the transaction.
  • Expected Completion: The acquisition is anticipated to close within 45 days.
  • Financial Snapshot:
    • Seven Technology LLC: No independent operations.
    • Dinie’s Turnover:
      • 2024: BRL 357,920
      • 2023: BRL 2,065,404
      • 2022: BRL 4,013,429
  • Incorporation Date: Seven Technology LLC was incorporated on October 24, 2024.
  • Related Party Status: This transaction is not classified as a related party transaction.

This investment marks Paytm’s foray into the Brazilian market, aligning with its vision of expanding merchant payment solutions and financial services globally. Through its stake in Seven Technology LLC, Paytm aims to enhance its understanding of the digital lending and MSME financing ecosystem in Brazil, while strengthening its international growth strategy.

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