Paytm Turns Fully Indian-Owned as Antfin Exits with Rs 3,803 Crore Stake Sale
- Antfin exits Paytm, making it fully Indian-owned.
- Major foreign investors like Alibaba, SoftBank have also exited.
- Paytm reports profit of Rs 123 crore in Q1 FY26, boosting investor confidence.
Paytm is now officially a fully Indian-owned company following the complete exit of Chinese investor Antfin (Netherlands) Holding BV, which sold its remaining 5.84% stake in One97 Communications, the parent company of Paytm, for approximately Rs 3,803 crore through a block deal. The move not only ends all Chinese ownership in the fintech firm but also marks a major shift in the company’s shareholder base towards domestic and global institutional investors.
The development fulfills a prediction made by founder Vijay Shekhar Sharma in 2015, when he said, 'We are as Indian as Maruti'. A person familiar with the matter stated, 'Paytm is now as Indian as Tata', highlighting the national sentiment behind the shift. The company’s pre-IPO cap table has seen a near-complete churn with major early investors such as Alibaba, SoftBank, and Berkshire Hathaway exiting over the past two years. Elevation Capital, formerly SAIF Partners, remains the only significant pre-IPO investor with a 15.4% stake as of June 2025.
This ownership restructuring comes at a time when Paytm has shown strong financial performance. The company reported its first fully profitable quarter in Q1 FY26, posting a net profit of Rs 123 crore. Its revenue rose 28% year-on-year to Rs 1,918 crore, while contribution profit grew 52% to Rs 1,151 crore, marking a positive shift in investor confidence and operational performance.
Antfin’s exit concludes a complex chapter in Paytm’s journey that began with high hopes. The Chinese investor had put in an estimated Rs 33,600 crore into the company, part of a broader strategy to tap into India’s digital payments space. However, with India increasing scrutiny on Chinese investments from 2020 onwards due to geopolitical tensions, Antfin’s presence turned from strategic to problematic. The regulatory tightening also affected Paytm’s NBFC license, prompting the company to emphasize its compliance and commitment to India-first innovation.
Antfin’s 10% stake was transferred to Sharma in 2023 via a structured debt agreement to be repaid over time. Though the investment did not yield the expected returns for Antfin, it enabled Paytm to pivot away from foreign ownership concerns. Following the exit, Paytm’s stock dipped slightly by 1% to Rs 1,058 on the BSE, but analysts believe this move removes a long-standing overhang. JM Financial noted that the realignment may ease supply pressures and improve investor sentiment as the firm awaits its payment aggregator license. Jefferies recently upgraded Paytm’s rating to ‘Buy’ and raised the target price to Rs 1,250, reflecting growing market confidence.
Meanwhile, Paytm continues to focus on product and feature expansion. The platform has rolled out options to hide or unhide UPI transactions, download statements in various formats, track total balances across bank accounts, and customize UPI IDs. The company has also extended international UPI services to countries including the UAE, Singapore, France, Mauritius, Bhutan, Sri Lanka, and Nepal enhancing the experience for Indian users abroad. With these moves, Paytm appears to be realigning its foundation for sustained growth, both in terms of ownership and operations, as it charts a new chapter in the Indian fintech space.
