Listed fintech major Paytm has sold its entire 12.75% stake in mobility aggregator Jugnoo’s parent Socomo Technologies for INR 3 crore, marking a significant exit from the company. This move is part of Paytm’s strategic focus on strengthening its core payments and financial services business.
Paytm Exits Jugnoo, Sells 12.75% Stake for INR 3 Cr
Background of the Deal
Paytm’s board approved the sale of the stake in Socomo, which is expected to be completed by the end of March 2025. Interestingly, Jugnoo repurchased Paytm’s 12.75% stake for INR 23.52 crore, consolidating its ownership and enhancing operational control.
Jugnoo’s Expansion Plans
Jugnoo, founded in 2014 by Samar Singla and Chinmay Agarwal, started as an auto-aggregator platform and has since expanded its offerings to include B2B logistics and hyperlocal food and grocery delivery. The company plans to undertake an INR 10 crore rights issue to expand operations and enhance technological capabilities in mobility and logistics.
Paytm’s Focus on Profitability
The stake sale is part of Paytm’s efforts to focus on its core payments and lending business, with an eye on turning profitable. The company has been selling its non-core businesses, including the sale of its events and movies ticketing arm, Paytm Insider, to Zomato for $241.8 million. Stay tuned for more updates on Paytm’s growth journey!
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