Paytm Sells 49% Stake in UAE Subsidiary to Alabbar's Firm

Paytm Arab Payments LLC, a fintech entity located in the UAE and a subsidiary of One97 Communications, has decided to issue equity shares amounting to a 49 percent stake to Abu Dhabi's Abbar Global Opportunities Holdings Limited for around Rs 19 crore, as revealed in a regulatory update on Monday.

Abbar Global Opportunities Holdings, a special purpose vehicle owned by Mohamed Ali Rashed Alabbar—founder of Emaar Properties renowned for iconic projects like the Burj Khalifa and Dubai Mall—will be the new partner.

The official filing stated that Paytm Arab Payments' Board of Directors has approved the issuance of 76,862 equity shares with a nominal value of AED 100 each, equating to 49 percent of the company’s post-issue paid-up share capital to the entity owned by Alabbar.

Established to broaden the reach of Paytm's technology-driven merchant payment solutions in the UAE, Paytm Arab Payments LLC was initially a wholly owned subsidiary of Paytm Cloud Technologies Limited.

Once the deal is finalized, Paytm Arab Payments will transition from being a wholly owned subsidiary to a 51 percent-owned one, while still functioning as a step-down subsidiary under One97 Communications, according to the filing.

Additionally, the Paytm Cloud Technologies board has ratified the establishment of two new wholly owned subsidiaries in Indonesia and Luxembourg, with an initial investment of Rs 25 crore for each. This aligns with Paytm’s strategic vision of entering select international markets to broaden its global footprint in merchant payments and financial services.

The recent investment and expansion initiatives underline Paytm's commitment to enhancing its international presence by collabing with partners who possess significant regional expertise.