Paytm has acquired an interoperable e-commerce startup, Bitsila, under a situation of turmoil as RBI has stopped its subsidiary from accepting new deposits after February 29. The fintech major denied giving any information about the deal, and one of the spokesperson said, “We firmly deny the news of Paytm's proposed acquisition of Bitsila.”

 According to the sources, Bengaluru-based Bitsila is currently the third largest seller side platform by transactions on the Open Network for Digital Commerce (ONDC). Though the company didn’t share any information but the deal is in advanced stages and will likely close in the coming week. Paytm signed the deal with Innobits Solutions Private Limited, the parent entity of ONDC seller firm Bitsila.

Bitsila is a Bengaluru-based seller side platform,founded by Dasharatham Bitla and Sooryah Pokkali in 2020, by transactions on the Open Network for Digital Commerce (ONDC). It is a B2B app which helps onboard small merchants to the network.

After the bi-monthly Monetary Policy Committee (MPC) meeting, in a conversation with media the Deputy Governor of RBI, Swaminathan J said, "Just one clarification, this particular action is against Paytm Payments Bank and not to be confused with Paytm App...App is not impacted by this action."

Paytm spokesperson told PTI,” We assure our users and merchant partners that the Paytm app remains fully operational, and our services are unaffected.”

He further added, “We assure our merchant partners that Paytm QR, Soundbox and card machines will continue to work as always. Our dedication to providing seamless payment solutions and promoting financial inclusion across India remains as strong as ever.”

Paytm Ecommerce Private Limited has now been renamed to PAI Platform Private Limited. CEO of Paytm Vijay Shekhar Sharma said that Paytm will onboard 10 million of its merchants to ONDC by the end of 2025.