Listed fintech Paytm's board has approved the sale of its 100% stake in its wholly owned subsidiary, Xceed IT Solutions Private Limited.
Existing Directors of Xceed, Vineet Narang and Sabina Kamal, will buy these stakes for consideration worth INR 60,728.
As per the exchange filing, Xceed's net worth is INR 5.17 Lakhs and it currently has no business operations.
In an exchange filing today (January 20), Paytm said, "The Board of Directors of our subsidiary, Mobiquest Mobile Technologies Private Limited at its meeting held on January 20, 2025, approved the sale of 100% stake in its wholly owned subsidiary, Xceed IT Solutions Private Limited (Xceed)."
Formed in 2005, Xceed IT Solutions is a wholly owned subsidiary of Mobiquest Mobile Technologies Private Limited, which operates in the field of information technology, specifically engaged in computer programming, consultancy, and related activities.
Post this transaction, Xceed will cease to be a step-down subsidiary of the company. The expected date of completion of the sale is February 28.
The development comes on the sidelines of the company announcing its Q3 FY25 numbers today. Paytm trimmed its consolidated net loss by 6% to INR 208.5 Cr in the December quarter of the financial year 2024-25 (Q3 FY25) from INR 221.7 Cr in the same quarter of the previous fiscal year.
The Vijay Shekhar Sharma-led company posted a net profit of INR 930 Cr in the quarter ended September 30, 2024 on account of the sale of its movie and events ticketing business to foodtech major Zomato.
Revenue from operations declined 36% to INR 1,827.8 Cr during the quarter under review from INR 2,850.5 Cr in the year-ago period. However, it rose 10% from INR 1,659.5 Cr on a quarter-on-quarter basis.
Including other income of INR 188.7 Cr, total revenue stood at INR 2,016.5 Cr in the quarter ended December 31, 2024 as compared to INR 2,999.1 Cr in the same quarter last year.
The fintech giant managed to bring down its overall expenses by 31% to INR 2,219.8 Cr in Q3 FY25 from INR 3,216.3 Cr in Q3 FY24