In the June quarter (Q1) of the current fiscal year, Japanese tech investor SoftBank reportedly withdrew from the financially troubled fintech major PaytmPaytm Datalabs_in-article-icon at a loss of $150 million.
News agency PTI claimed, citing sources, that the investment firm lost between 10% and 12% on its capital investment in the fintech major. According to reports, One97 Communications, the parent company of Paytm, received nearly $1.5 billion from SoftBank in several tranches in 2017.
Softbank has left Paytm after suffering a 10-12% loss. The report cited a source as saying, “The total loss is approximately $150 million.”
According to a different source, SoftBank intends to divest Paytm within 24 months of the fintech company’s initial public offering (IPO). This development is consistent with their plan.
For those who are unaware, prior to the fintech giant’s IPO in 2022, Softbank controlled about 18.5% of Paytm through two entities. SVF Panther (Cayman) Ltd owned 1.2% of the company led by Vijay Shekhar Sharma, while SVF India Holdings (Cayman) Ltd owned 17.3%.
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