For $1 million, Paytm Cloud Technologies, a fully owned subsidiary of the fintech company Paytm, plans to purchase a 25% share in Seven Technology, a Brazilian embedded finance company.
According to the company, the acquisition will aid Paytm in comprehending the merchant business environment in the Brazilian market.
The parent company of Dinnie, Seven Technology, which was incorporated in Delaware, makes it possible for digital and e-commerce platforms to offer financial services solutions to Brazilian MSMEs.
"We think there is room for growth in comparable international markets with our technology-driven merchant payments and financial services distribution model in India," Paytm stated.
Seven Technology and Dinnie will become associate entities of One97 Communications (OCL), the parent company of Paytm, after the transaction is finalized.
Paytm's plan for international growth
This most recent foreign market investment follows weeks after Paytm sold its $250 million stake in a Japanese business.
The sale of Stock Acquisition Rights (SARs) in Japan-based PayPay Corporation was authorized by One97 Communications Singapore last year. These SARs were purchased by Paytm's Singapore division in September 2020.
During an analyst call last month, Paytm CEO Vijay Shekhar Sharma alluded to the company's primary growth areas as being merchant acquisition and payment facilitation in new markets.
With new subsidiaries in Singapore, Saudi Arabia, and the United Arab Emirates, the company intends to grow internationally.
