According to the Vision Fund’s Executive Managing Partner, SoftBank Group sold a majority of its stake in Paytm before regulatory scrutiny plunged its shares.
The Tokyo-based tech investor is concerned about the uncertain regulatory environment in India and the license of Paytm Payments Bank. SoftBank has been selling off Paytm shares regularly since November 2022, reducing its stake from around 18.5 per cent to about 5 per cent as of January.
The fintech major has received warnings from regulators regarding its payments app and banking arm, leading to the suspension of much of the banking operation’s business by the Reserve Bank of India (RBI).
The stringent actions by the watchdog have caused Paytm’s stock price to decline by over 40 percent from its peak in January. Despite this, SoftBank reported its first profit in four quarters, with its Vision Fund also turning a profit in the December quarter. However, its new bets have decreased significantly, and its exit activity has exceeded the scale of its new investments.