Paytm brings in Emaar founder’s vehicle for UAE payments unit

Paytm is expanding its international footprint, approving new overseas subsidiaries in Indonesia and Luxembourg while bringing in a strategic investor for its payments business in the United Arab Emirates.

Paytm Cloud Technologies Ltd, a wholly owned subsidiary of One 97 Communications Ltd., said its board approved the incorporation of two new wholly owned subsidiaries that will serve as step-down units of the listed company.

The proposed subsidiaries will focus on distributing Paytm’s technology-led payments and financial services offerings through a mix of local licenses, partnerships, investments and organic expansion. Each unit will receive an initial investment of up to Rs 25 crore in one or more tranches, according to the filing.

Separately, Paytm disclosed that it has agreed to dilute its ownership in Paytm Arab Payments L.L.C., its UAE-based payments subsidiary, following an investment by Abbar Global Opportunities Holdings Ltd.

The Abu Dhabi Global Market–based entity will acquire a 49% stake in Paytm Arab Payments through the issuance of 76,862 equity shares with a face value of AED 100 each, for a total consideration of about AED 7.69 million or about Rs 18.75 crore.

Abbar Global Opportunities Holdings is a special purpose vehicle of Mohamed Ali Rashed Alabbar, the founder of Emaar Properties and a co-founder of ecommerce platform Noon. Alabbar also holds leadership roles in Americana Restaurants, Zand Bank and Eagle Hills.

The deal is expected to close by February 28, 2026, subject to regulatory approvals and other customary conditions.

Earlier this year, Paytm Cloud Technologies had announced new subsidiaries in the United Arab Emirates, the Kingdom of Saudi Arabia, and Singapore with an initial investment of up to Rs 20 crore ($2.4 million) per subsidiary.

Paytm had also played a role in the creation of Japanese fintech PayPay, which may raise $2 billion in a US IPO.

Paytm was one of SoftBank’s earliest and most visible fintech bets in India, and its success in driving offline QR payments at scale caught its founder Masayoshi Son’s attention as a template for cash-heavy markets like Japan.

SoftBank later replicated key elements of Paytm’s approach in Japan through a joint venture with Yahoo Japan and Paytm Singapore, launching PayPay in 2018.

On December 6, 2024, Paytm Singapore announced the sale of its stake in PayPay Corporation to the Vision Fund for around $250 million after SoftBank sold its remaining stake in Paytm.