Fintech company Paytm’s division, Paytm Cloud Technologies Ltd. (PCTL), has started a wholly owned subsidiary in the United Arab Emirates (UAE).
In a filing, Paytm said that the board of PCTL has approved an investment of AED 8 million ($2.1 million or INR 18.41 crore) to buy 80,000 shares in its new subsidiary, Paytm Arab Payments LLC.
“Paytm Arab Payments LLC will work towards the expansion and distribution of Paytm’s technology-led merchant payments and financial services stack in the UAE,” the filing said.
The fintech company mentioned that no government or regulatory approval is needed to set up the new subsidiary.
This comes three months after Paytm announced in January that PCTL would create a wholly owned subsidiary in the United Arab Emirates. At that time, the company also mentioned plans to set up subsidiaries in Saudi Arabia and Singapore to expand and generate revenue from its tech-based payment and financial services in global markets.
The listed fintech giant then said it was exploring different ways to grow in those three countries, including through acquisitions, local licenses, strategic investments, and partnerships.
This development comes as the fintech giant has introduced several new services and refocused on its main digital payments business after the RBI took action against Paytm Payments Bank last year.
The company’s push to expand overseas is part of its effort to grow its products in other countries and create new ways to earn revenue. Along with this, it launched an updated version of its soundbox device earlier this month, which now has a built-in digital screen to show instant payment alerts.
Earlier this year, the markets regulator SEBI approved Paytm’s investment arm, Paytm Money, to work as a research analyst. Brokerage firm Motilal Oswal thinks this could help Paytm expand into wealth management, creating a new way to earn money through fees.
Paytm has also been planning to apply for a payment aggregator license through Paytm Payment Services Limited (PPSL). These new launches are part of the company’s efforts to increase its revenue and become profitable.
Meanwhile, Paytm’s co-founder and CEO, Vijay Shekhar Sharma, has repeatedly said over the past few months that the company is on track to make a profit in the first quarter of the fiscal year 2025-26 (FY26).
Paytm reduced its net loss by 6%, bringing it down to ₹208.5 crore in Q3 FY25, compared to ₹221.7 crore in the same quarter last year. However, its revenue from operations dropped by 36%, falling to INR 1,827.8 crore this quarter, down from INR 2,850.5 crore in the previous quarter of FY24.
Shares of Paytm ended today’s trading session 0.72% lower at INR 864.30 on the BS.
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