Sunday, March 3, 2024
Business News

Report says Billionaire Sunil Mittal seeking a stake in Paytm

Indian billionaire Sunil Mittal, the Chairperson of Bharti Enterprises, is reportedly in talks to acquire a stake in Paytm, one of the largest digital payment platforms in India. According to a report by Bloomberg, Mittal plans to merge his Airtel Payments Bank into Paytm Payments Bank, with an all-stock deal in the works. In addition to the merger, it is also speculated that Mittal may purchase Paytm shares from other stakeholders.

The talks are said to be in the preliminary stages, and no final decisions have been made as yet. However, if the deal goes through, it could potentially create one of the largest digital banking and payments companies in India. This move is expected to strengthen both Paytm and Airtel’s position in the highly competitive and rapidly growing digital payments industry.

Paytm was founded in 2010 by Vijay Shekhar Sharma and has become one of India’s most successful startups. It offers a range of digital payment services, including mobile recharges, bill payments, and online shopping. In 2017, Paytm launched its payments bank, which allows customers to open savings accounts and earn interest on their deposits.

Airtel Payments Bank, on the other hand, was launched in 2016 and is a joint venture between Bharti Airtel and Kotak Mahindra Bank. The bank offers services such as savings accounts, mobile wallets, and UPI-based money transfers.

If the acquisition is successful, it could also potentially help Mittal expand his reach in the digital payments industry. Mittal, who is one of India’s richest men, has been at the helm of Bharti Enterprises for several decades and has been credited with turning the company into one of India’s largest telecommunications firms.

In recent years, India’s digital payments industry has grown rapidly, driven by government initiatives such as demonetization and the rise of mobile internet usage. The industry is expected to continue to grow in the coming years, with more and more people opting for digital payments over cash.