Paytm Cloud Technologies, a subsidiary of the leading fintech company Paytm, has received board approval to establish three new subsidiaries in the UAE, Saudi Arabia, and Singapore. This strategic move is part of Paytm’s broader plan to expand its global presence and leverage its tech-driven payment and financial services offerings in international markets.
In an official exchange filing on January 20, Paytm announced that its wholly-owned subsidiary, Paytm Cloud Technologies Limited (PCTL), has been granted the go-ahead to set up these new entities. Once operational, these subsidiaries will serve as step-down entities under Paytm. The new subsidiaries are expected to be fully established within six months, with an initial investment of up to INR 20 crore allocated to each unit, to be disbursed in one or more tranches.
The company revealed its intention to explore multiple growth opportunities in international markets, including inorganic expansion, securing local licenses, strategic investments, and forming partnerships.
In a separate development, Paytm’s subsidiary, Mobiquest Mobile Technologies, has also received approval to sell its entire 100% stake in its fully owned subsidiary, Xceed IT Solutions. The shares will be acquired by Xceed IT’s current directors, Vineet Narang and Sabina Kamal, through a cash transaction valued at INR 60,728. Mobiquest, specializing in IT services such as computer programming and consultancy, made the decision to divest from Xceed IT Solutions.
Paytm also shared its financial performance for the third quarter of FY2024-25, reporting a 6% reduction in its consolidated net loss, which narrowed to INR 208.5 crore from INR 221.7 crore in the same period last year. The company reported a net profit of INR 930 crore in the September quarter of the current fiscal year. However, operating revenue dropped by 36% to INR 1,827.8 crore, compared to INR 2,850.5 crore in the same period last year, although it showed a 10% growth from INR 1,659.5 crore in the previous quarter.
