Paytm invests $1 million in Brazil's Dinie for global expansion

According to Paytm's filing, the move will help the company deepen its understanding of the Brazilian market, which presents opportunities in merchant payments and financial services

Paytm's subsidiary, Paytm Cloud Technologies Limited (PCTL), has made a strategic investment of $1 million (approximately Rs 8.7 crore) to acquire a 25% stake in Seven Technology LLC, the parent company of Brazilian embedded finance startup, Dinie. The transaction is aimed at expanding Paytm’s presence in international markets and increasing its footprint in the rapidly growing fintech sector.

This deal positions Seven Technology and Dinie as associate entities under Paytm’s parent company, One97 Communications. According to Paytm's filing, the move will help the company deepen its understanding of the Brazilian market, which presents opportunities in merchant payments and financial services. By gaining insight into the local business ecosystem, Paytm aims to leverage the growing fintech potential in emerging markets, particularly in Latin America.

Paytm eyes global expansion opportunities

Despite Dinie’s recent financial struggles, including a significant revenue decline over the past three years, Paytm sees long-term potential in the partnership. In 2022, Dinie recorded revenue of BRL 4.01 million (Rs 6.11 crore), but this dropped to BRL 357,920 (Rs 0.56 crore) by 2024. Nevertheless, Paytm believes that the investment will provide a foothold for expanding its payment solutions internationally.

Also Read: Paytm UPI goes global: Make payments in malls, markets, and cafes across 6 countries

This investment is part of Paytm's broader strategy to expand its services in global markets. Recently, the company revealed plans to set up businesses in the UAE, Saudi Arabia, and Singapore, aiming to offer its advanced merchant payments and financial services in these regions. The company is considering both organic growth and partnerships to achieve these goals, with an initial investment plan of up to Rs 20 crore for each market.

Additionally, Paytm intends to streamline its international operations by reducing the number of overseas subsidiaries connected to its legacy telecom services. The company aims to consolidate its efforts around its core payments and fintech business in the coming months.