Paytm to acquire stake in Brazilian startup Seven Tech for $1 million

Paytm Cloud Technologies, a wholly owned subsidiary of fintech firm Paytm, is set to acquire a 25 per cent stake in Brazil-based embedded finance firm Seven Technology for $1 million.

The acquisition will help Paytm understand the merchant business landscape in the Brazilian market, the company said.

Seven Technology, incorporated in Delaware, is the parent company of Dinnie, which enables digital and e-commerce platforms to provide financial services solutions to micro, small, and medium-sized enterprises (MSMEs) in Brazil.

Following the completion of the transaction, Seven Technology and Dinnie will become associate entities of One97 Communications (OCL), the parent company of Paytm.

“We believe that our technology-led merchant payments and financial services distribution model in India has the potential for expansion in similar international markets,” Paytm said.

Paytm’s global expansion strategy

This latest investment in an overseas market comes weeks after Paytm sold its stake in a Japanese company for $250 million.

One97 Communications Singapore approved the sale of Stock Acquisition Rights (SARs) held in Japan-based PayPay Corporation last year. Paytm’s Singapore unit had acquired these SARs in September 2020.

Paytm chief executive officer (CEO) Vijay Shekhar Sharma had hinted that merchant acquisition and payment facilitation in new markets were among the firm's key growth areas during an analyst call last month.

The company has plans to expand its operations globally with new subsidiaries in the UAE, Saudi Arabia, and Singapore.

Paytm’s financial performance

Paytm narrowed its losses to Rs 208.3 crore in the third quarter of financial year 2025 (Q3FY25), down from Rs 219.8 crore in Q3FY24.

The loss follows a profitable September quarter, when the company reported a profit of Rs 928.3 crore, driven by the sale of its movie and ticketing business to Zomato.

The Noida-based company’s revenue declined 35.9 per cent to Rs 1,827.8 crore in the quarter, from Rs 2,850.5 crore in the corresponding quarter last year. Sequentially, revenue rose 10.1 per cent from Rs 1,659.5 crore in Q2FY25.