One 97 Communications Limited (Paytm) has completed a significant acquisition, marking a strategic move in its corporate restructuring efforts. The fintech giant has acquired a 90.01% stake in Foster Payment Networks Private Limited, a technology services company, for approximately INR 55.20 crores.

Key Details of the Acquisition

About Foster Payment Networks

Foster Payment Networks, incorporated in February 2021, operates in the technology services sector. The company's financial performance has shown steady growth over the past three years:

Strategic Implications

This acquisition is part of Paytm's internal restructuring initiative, aimed at simplifying the group structure and improving business efficiency. With this transaction, Foster Payment Networks has transitioned from an associate company to a subsidiary of Paytm.

Future Plans

Paytm intends to complete the acquisition of the remaining 9.99% equity shares from other shareholders by December 31, 2025. This final step is expected to cost approximately INR 6.20 crores, which will make Foster a wholly-owned subsidiary of Paytm.

Regulatory Compliance

The transaction has been executed in compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Paytm has confirmed that the acquisition qualifies as a related party transaction and has been carried out on an arm's-length basis, adhering to applicable regulatory provisions.

This strategic move by Paytm underscores the company's focus on streamlining its corporate structure and aligning its operations for improved efficiency in the competitive fintech landscape.

One 97 Communications , operating under the brand Paytm, India's leading fintech company, continues to innovate in the payment processing and personal finance sectors. The company has recently introduced the Paytm AI Soundbox at the Global Fintech Festival, an artificial intelligence-powered device designed to help small and medium enterprises manage daily operations and payments.

AI-Enabled Soundbox for Merchants

One 97 Communications has unveiled India's first AI-enabled Soundbox, transforming the traditional payment alert device into an intelligent business partner for merchants. Here are its key features:

The Paytm AI Soundbox is designed to benefit a wide range of businesses, from neighborhood stores and cafés to retail chains, by providing financial intelligence and simplifying operations.

AI-First Approach and Future Plans

Vijay Shekhar Sharma, Founder & CEO of One 97 Communications, emphasized the company's commitment to AI innovation, stating that they are entering the 'intelligence age' with AI-first products designed to make artificial intelligence accessible for every business.

In a significant announcement at the Global Fintech Fest in Mumbai, Sharma revealed his intention to focus on artificial intelligence as his next major business venture. He plans to soon announce a new AI-focused brand, highlighting the critical importance of AI in future business development.

Sharma expressed concern about India's current position in AI adoption, describing it as experiencing only a 'cool breeze of AI' compared to the 'storm brewing' in the Bay Area of the United States. He urged Indian entrepreneurs to invest heavily in AI innovation, stating he would put all available resources into AI development.

Looking Ahead

As India enters what One 97 Communications calls the "intelligence revolution," the company is positioning itself at the forefront of AI-enabled financial technology. The launch of the AI Soundbox represents a significant step in the company's mission to serve India's small business network, including local kirana stores, cafés, and retail chains.

The introduction of the AI Soundbox and Sharma's commitment to AI development underscore One 97 Communications' ongoing efforts to innovate in the fintech space, building on its history of pioneering mobile payments and QR code technology in India. As the company continues to develop AI-first products and explore new AI ventures, it aims to create technology that builds trust, enhances efficiency, and empowers millions of users and merchants to manage their finances with confidence, while also pushing India to the forefront of global AI innovation.