Paytm to acquire Bengaluru-based startup amid Payments Bank crisis: Report

Paytm is set to acquire e-commerce startup Bitsila, this amid the crisis gripping its subsidiary Payments Bank following the Reserve Bank of India crackdown. The deal is currently in advance stages and will likely close in the coming week, Moneycontrol reported.

Founded by Dasharatham Bitla and Sooryah Pokkali in 2020, Bitsila is a Bengaluru-based seller side platform by transactions on the Open Network for Digital Commerce (ONDC)

Paytm founder and CEO Vijay Shekhar Sharma during an event in Mumbai, (PTI)
Paytm founder and CEO Vijay Shekhar Sharma during an event in Mumbai, (PTI)

The Vijay Shekhar Sharma-led firm is already a buyer app on the ONDC. With this acquisition, Paytm will be able to deepen its reach within the ONDC, the report added.

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‘Regulatory action against Paytm Payments Bank’

Paytm is under fire after the central bank stopped its subsidiary from accepting new deposits after February 29, a move which the RBI says was driven by Payments Bank’s ‘persistent non-compliance’. However, the RBI said that the regulatory action is against Paytm Payments Bank and the Paytm app will not be affected.

“Just one clarification, this particular action is against Paytm Payments Bank and not to be confused with Paytm App…App is not impacted by this action,” RBI Deputy Governor Swaminathan J said in the media interaction after the bi-monthly Monetary Policy Committee (MPC) meeting.

Responding to the RBI clarification, a Paytm spokesperson told PTI,””We assure our users and merchant partners that the Paytm app remains fully operational, and our services are unaffected.”

“We assure our merchant partners that Paytm QR, Soundbox and card machines will continue to work as always. Our dedication to providing seamless payment solutions and promoting financial inclusion across India remains as strong as ever,” the spokesperson added.

(With PTI inputs)

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