The Chinese financial giant, which had invested in One 97 Communications since 2015, has seen a sharp decline of 45 per cent, or Rs 2,125 crore, in its stake value since the Reserve Bank of India (RBI) took action against Paytm Payments Bank on January 31. One 97 shares closed at Rs 422.6 a share on Monday.
The Chinese company, however, had sold its stake worth Rs 8,293 crore in three tranches over one year.
Vijay Shekhar Sharma, the founder and CEO of Paytm, has built the company from a startup to India s biggest mobile payments company. However, a recent regulatory move by RBI banning Paytm s payments bank for violations has put the company s future at risk. Sharma s focus on growth and big numbers may have led to regulatory compliance issues, but his determination and resilience may help Paytm survive this setback.