Paytm expands operations in Kingdom of Saudi Arabia; sets up wholly owned subsidiary

By Sunil Kumar Batra

New Delhi, July 17 (BVI): Expanding its reach in the digital payment space in other parts of the world, Vijay Sharma promoted One 97 Communications Limited (Paytm) today said its wholly owned subsidiary Paytm Cloud Technology has incorporated its subsidiary named “Paytm Company” in the Kingdom of Saudi Arabia, a move that would help the company to offer its services there.

In a regulatory filing with the stock exchanges, Paytm informed that, the Board of Directors of Paytm Cloud Technology Limited (PCTL), in its meeting held today, has approved a subscription amount of 85,00,000 Saudi Riyal towards the acquisition of 8,500 equity shares of 1000 Saudi Riyal each at par in Paytm Company.

“Paytm Company” will work towards expansion and distribution of Paytm’s technology led digital payments stack in Saudi Arabia, it said adding no governmental or regulatory approval is required for this transaction.

One97 Communication (or Paytm) is a listed company on the Indian bourses. On the issue of percentage of shareholding/control by the listed entity and/or number of shares allotted, Paytm said “The Company will indirectly hold 100 per cent of the shares in the proposed new wholly owned step down subsidiary through PCTL.”

Earlier in January, this year Paytm had informed the stock exchanges that its wholly-owned subsidiary, Paytm Cloud Technologies Limited, (PCTL) will incorporate its wholly owned subsidiary in the Kingdom of Saudi Arabia. Paytm shares at BSE closed at Rs 999.40 a share.