Paytm, a leading Indian fintech company, has announced a strategic investment of $1 million to acquire a 25% stake in Seven Technology LLC, the parent company of Brazilian embedded finance startup Dinie. The acquisition, made through Paytm’s wholly owned subsidiary Paytm Cloud Technologies Limited (PCTL), is part of the company’s broader strategy to expand its merchant payments and financial services internationally, particularly in emerging markets with strong fintech growth potential. The investment will enable Paytm to explore the Brazilian market more effectively, especially in the fintech and merchant payments space, which has seen considerable growth in recent years.
Following the transaction, both Seven Technology and Dinie will become associate entities of One97 Communications, Paytm’s parent company. Despite the potential of the Brazilian market, Dinie has faced financial challenges over the past three years, with its revenue falling sharply from BRL 4.01 million (Rs 6.11 crore) in 2022 to BRL 357,920 (Rs 0.56 crore) in 2024. Paytm’s investment aims to help stabilize and eventually grow the business.
Paytm’s stake in Brazilian fintech
This acquisition is part of Paytm’s broader international expansion strategy. During its recent quarterly earnings report, the company revealed plans to set up subsidiaries in the UAE, Saudi Arabia, and Singapore, with an initial investment of up to Rs 20 crore (in tranches) in each of the regions.
Paytm is also looking for local licenses, partnerships, and investments in these markets to tap into similar international opportunities and leverage its services stack for merchant payments and financial services. In addition to its international expansion, Paytm aims to rationalize its overseas subsidiaries, many of which are tied to its legacy telecom business under One97 Communications. Over the next three to six months, the company will focus on trimming these non-core subsidiaries to streamline its operations and align with its core business of fintech and merchant services.
Paytm’s investment in Dinie marks a significant step in the company’s international expansion strategy. By tapping into Brazil’s growing fintech market and focusing on strategic partnerships and subsidiary rationalization, Paytm is positioning itself to further solidify its presence in the global financial services space.
