Paytm has issued a statement refuting recent reports suggesting that the government has deferred approval for the fintech giant’s investment in its struggling payments arm.
The denial follows a Reuters article on April 16, which cited officials and a document claiming that India had postponed Paytm’s $6 million investment in Paytm Payments Services (PPSL) due to concerns about Chinese shareholding in One 97 Communications, Paytm’s parent company.
In a blog post titled ‘Government Champions Fintech: Paytm’s PPSL License Journey Progresses’, Paytm reiterated its commitment to providing uninterrupted payment services and highlighted its pioneering initiatives in mobile payments, QR technology, and Soundbox devices in India.
However, Paytm dismissed the Reuters report as “speculative” in a statement, emphasizing that the government has consistently supported fintech initiatives. The company stated that it promptly provided the requested information during the application process, with no indication of rejection or penalties.
Paytm emphasized its status as an Indian company founded and led by an Indian citizen, with founder Vijay Shekhar Sharma as the largest shareholder and sole Significant Beneficial Owner (SBO) of One 97 Communications Limited (OCL). It clarified that all Key Managerial Personnel (KMPs) and Board members of OCL are of Indian origin, and Ant Financial, a Chinese entity, has no board representation or special rights.
Addressing concerns about ownership, Paytm highlighted that Vijay Shekhar Sharma holds the majority stake in OCL, including shares held by his wholly-owned companies. It noted that Ant Financial reduced its stake in OCL to less than 10% in August 2023 to comply with regulations.
The statement underscored the importance of supporting indigenous entrepreneurship and innovation, emphasizing that backing Indian companies like Paytm is crucial for empowering them to compete globally and drive technological advancements.
Paytm reiterated its commitment to compliance with RBI regulations and its dedication to providing seamless payment services for SMEs and fostering digital growth for businesses and consumers alike.
