Vijay Shekhar Sharma, the founder and CEO of Paytm, is set to become the largest shareholder in the company after entering into an agreement to buy 10.3% stake from Antfin (Netherlands) Holdings BV for $628 million.
The deal, which was announced on Monday, will see Sharma’s stake in Paytm increase to 19.42%. Antfin, which is an affiliate of Chinese tech giant Alibaba, will see its stake in Paytm decline to 13.5%.
The deal is a significant moment for Paytm, as it will give Sharma more control over the company’s direction. It also comes at a time when Paytm is facing increasing competition from other digital payment providers, such as Google Pay and PhonePe.
In a statement, Sharma said that he was “excited to become the largest shareholder in Paytm” and that he was “committed to leading the company to even greater heights.”
He added that the deal would “allow us to accelerate our growth plans and continue to deliver innovative financial services to our customers.”
The deal is expected to close in the next few months.
The deal is a sign that Sharma is confident in Paytm’s future. It also shows that he is willing to take steps to consolidate his control over the company.
The deal will likely face some scrutiny from regulators, but it is unlikely to be blocked. Sharma has a strong track record with Paytm, and the company is still growing rapidly.
The deal is a positive development for Paytm and its shareholders. It gives Sharma more control over the company and it provides a vote of confidence in its future.