Paytm Invests in Brazilian Fintech Dinie: For the Globally expansion, fintech firm Paytm is all set to acquire a 25% stake in a Brazilian embedded finance start-up ‘Dinie’. The company’s wholly owned subsidiary, Paytm Cloud Technologies, on Monday approved an investment of $1 million for the acquisition of Seven Technology LLC (Dinie’s parent company).
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Paytm Invests in Brazilian Fintech Dinie: Paytm in Exchange Filling?
In a regulatory filing, Paytm wrote, “This investment would help in understanding the merchants’ business landscape and opportunity in the Brazilian market. We believe that our technology-led merchant payments and financial services distribution business model in India has the potential for expansion in a similar international market.
Paytm Cloud Technologies Limited, our wholly-owned subsidiary (PCTL), that the Board of Directors of PCTL at its meeting held on February 03, 2025…Has approved an investment of USD 1 million (equivalent to Rs 8.70 crore) in Seven Technology LLC incorporated in Delaware for the acquisition of a 25 percent stake,” the company said in a regulatory filing.
Paytm Invests in Brazilian Fintech Dinie: Deal Period
The acquisition deal is expected to be completed within 45 days, with Paytm making the whole investment in cash. Once the deal is completed, Seven Technology and Dinie will become associate entities of One97 Communication, the parent company of Paytm.
While Seven Technology has no standalone operations, Dinie enables e-commerce platforms to provide digital financial services solutions to micro, small, and medium-sized enterprises (MSMEs) in Brazil. It is pertinent to note that Dinie recorded a huge decline in its revenue over the past three years, i.e., from BRL 4.01 million in 2022 to BRL 357,920 in 2024.
Paytm’s Global Expansion Plans
During the company’s quarterly earnings call on January 20, Paytm CEO Vijay Shekhar Sharma talked about the fintech firm’s plans to set up businesses in UAE, Saudi Arabia, and Singapore. His main motive for global expansion is to leverage Paytm’s tech-enabled merchant payments and financial services in ‘similar international markets’ like India and to seek local licenses along with partnerships.
Paytm’s chief financial officer said on Paytm Invests in Brazilian Fintech Dinie
We are looking to rationalize our other overseas subsidiaries,” said Madhur Deora, Paytm’s chief financial officer. At present, the fintech firm has many subsidiaries (direct or step-down) in the Middle East, Southeast Asia, and Africa. However, nearly none of these subsidiaries align with Paytm’s core business, instead stemming from the legacy One97 Communications business – which provides marketing services to telecom operators, she added.
Our wholly-owned subsidiary, Paytm Cloud, will invest $1 million (INR 8.70 crore) for a 25% stake in Seven Technology LLC, the parent company of Brazil's Dinie, which enables digital platforms to offer financial services to MSMEs. This expansion aligns with our efforts to extend… pic.twitter.com/sTfqwg40fG
— Paytm (@Paytm) February 3, 2025
Financial Performance
present, the fintech firm has many subsidiaries (direct or step-down) in the Middle East, Southeast Asia, and Africa. However, nearly none of these subsidiaries align with Paytm’s core business, instead stemming from the legacy One97 Communications business – which provides marketing services to telecom operators, she added.
Dinie enables digital and e-commerce platforms to provide digital financial services solutions to micro, small, and medium-sized enterprises (MSMEs) in Brazil.
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