This VC firm sold its stake in Paytm worth ₹1,550cr
What's the story
Elevation Capital (formerly SAIF Partners), a prominent venture capital firm, has sold a portion of its stake in One97 Communications, the parent company of Paytm. The sale involved 1.19 crore shares worth ₹1,555.95 crore through a bulk deal on the National Stock Exchange (NSE). The transaction was executed at ₹1,305 per share and included two funds managed by Elevation Capital: SAIF III Mauritius Company and SAIF Partners India IV.
Stake retention
Elevation Capital retains significant stake in Paytm
Despite the recent sale, Elevation Capital still holds a significant stake in Paytm. The firm owns 10.8% through SAIF III Mauritius Company and 4.6% via SAIF Partners India IV. At current market prices, these holdings are worth ₹12,695.78 crore.
Historical investment
Long-standing relationship with Paytm
Elevation Capital has been an early investor in Paytm, having first invested in the company back in 2007 when it was a mobile value-added services (VAS) provider. The firm also participated as a selling shareholder during the fintech giant's public listing in 2021. This long-standing relationship highlights Elevation Capital's confidence in Paytm's business model and growth potential over the years.
Shareholder changes
Recent developments in shareholder landscape
In August, Jack Ma's Ant Financial sold its complete 5.84% stake in Paytm for around ₹3,803 crore amid increasing scrutiny over Chinese investors in Indian firms. This move marked the end of Chinese representation on the cap table of the Indian company.