Adani Group Chairman Gautam Adani is reportedly in talks with Paytm to acquire a stake in One97 Communications, which is the parent company of Paytm.Â
According to a story in the Times of India, which cited sources with knowledge, on May 28, Vijay Shekhar Sharma, the founder and CEO of Paytm, met with Gautam Adani at the company’s Ahmedabad headquarters in order to “finalise the terms of the deal”.
At present, Vijay Shekhar Sharma holds around 19% of One 97 personally and an additional 10% through a foreign company called Resilient Asset Management. Both have public shareholder listings. Directors of One 97 own 9% of the company, Saif Partners (15%), and Antfin Netherlands (10%) are other notable shareholders. With a market valuation of ₹21,773 crore, One 97 began as a platform for recharging users. Later, it shifted its payment and merchant acquisition operations to Paytm Payments Bank (PPBL), where it was subject to regulatory action from the Reserve Bank of India (RBI).
Table of Contents
What is Paytm?
Paytm, founded by Vijay Shekhar Sharma in 2010, began as a mobile recharge and utility bill payment platform. Paytm means “Pay Through Mobile”. It quickly expanded to include a digital wallet in 2014, becoming a leader in India’s digital payments landscape. The 2016 demonetization in India significantly boosted its user base and transactions.Â
Paytm launched Paytm Payments Bank in 2017 and entered financial services with Paytm Money and insurance. In 2021, it went public with one of India’s largest IPOs. As of 2023, Paytm serves over 350 million users and 20 million merchants, solidifying its role as a key player in India’s fintech ecosystem.
What's the Deal Between Adani-Paytm?
India’s top digital payments and financial services company, Paytm, and one of India’s biggest conglomerates, Adani Group, have been the subject of increasing amounts of speculation in recent weeks regarding a possible merger. Despite being unfounded, these allegations have generated a lot of attention and discussion in business and financial circles because of the potential revolutionary effects such a relationship may have on India’s quickly developing fintech industry.
The reported sources mentioned that Adani is engaging with West Asian Funds to attract them as investors in One97, the company pioneered mobile payments in India.
According to TOI, Binoy Parikh, executive director of Katalyst Advisors, stated: “Aligning with Adani Group would provide the robust financial backing needed to address regulatory compliance issues and stabilise its operations, particularly with Paytm facing financial strain and regulatory bottlenecks.” Adani’s goal of becoming a dominant force in the fintech industry would be enhanced by incorporating Paytm’s well-established digital payments platform into their varied business portfolio.
Paytm's Response About Deal With Adani Group
In response to a media story on Wednesday, One97 Communications stated that Gautam Adani, the head of the Adani Group, is probably thinking about buying a share in One97 Communications, the business that owns Paytm.
“We hereby clarify that the above mentioned news item is speculative and the company is not engaged in any in discussion in this regard. We have always made and will continue to make disclosures in compliance with our obligations under the SEBI ( Listing Obligation and Disclosure Requirements) Regulations 2015”, communicated the company in an official statement.
Conclusion
The Adani-Paytm transaction is still hypothetical, but there could be big consequences from this alliance. In India’s dynamic fintech scene, it reflects broader tendencies of mergers and strategic collaborations. Any developments will be eagerly watched by investors and market observers, since the confirmation of these reports has the potential to change the competitive landscape of India’s digital payments and financial services industries.
As of right now, the market is still speculating while it  has been made clear by both the sides that they are not engaged in any of these kinds of discussions.Â
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