Paytm Transfers 49% Stake in UAE Unit to Alabbar Entity

Post by : Bianca Suleiman

The fintech company Paytm Arab Payments LLC, a subsidiary of One97 Communications based in the UAE, has sanctioned the sale of 49% of its equity shares to Abu Dhabi's Abbar Global Opportunities Holdings Limited for about Rs 19 crore, as specified in a regulatory document released on Monday.

Abbar Global Opportunities Holdings Limited is a special purpose vehicle formed by Mohamed Ali Rashed Alabbar, founder of Emaar Properties, renowned for iconic projects like the Burj Khalifa and Dubai Mall.

According to the release, the Board of Directors of Paytm Arab Payments has given the green light for the issuance of 76,862 equity shares, each valued at AED 100, making up 49% of the firm's post-issue paid-up share capital destined for Abbar Global Opportunities Holdings Limited.

Paytm Arab Payments LLC was established with the aim of promoting Paytm’s advanced merchant payment and financial services offerings in the UAE, initially as a fully owned subsidiary of Paytm Cloud Technologies Limited.

Upon the finalization of this transaction, Paytm Arab Payments will transition from being a wholly owned subsidiary of Paytm Cloud Technologies to a 51%-owned subsidiary, while still remaining a step-down subsidiary of One97 Communications, as noted in the filing.

In a related move, Paytm Cloud Technologies’ board has approved the formation of two new wholly owned subsidiaries in Indonesia and Luxembourg, each requiring an initial investment of Rs 25 crore. This aligns with Paytm's ambition to penetrate select international markets and broaden the scope of its merchant payment and financial services technology.

This recent investment and expansion effort underscores Paytm's commitment to enhancing its global footprint by partnering with strategically placed experts in various regions.