Paytm has changed the name of its e-commerce platform. The company has changed the name of Paytm e-commerce to Pai Platforms. It has also acquired Bitsila to increase its stake in online retail business. Bitsila is a seller platform on ONDC. Sources familiar with the matter said that the company had applied for change of name about three months ago. On February 8, it got approval from the Registrar of Companies. As per the notification of the Registrar of Companies dated February 8, the name of the company has been changed from Paytm E-Commerce Private Limited to Pai Platforms Private Limited with effect from the date of this certificate.
That’s why the company took this step
Elevation Capital is the largest shareholder in Paytm e-commerce. It is also backed by Paytm founder and chief executive officer (CEO) Vijay Shekhar Sharma, SoftBank and eBay. Sources said that the company has now acquired Innobits Solutions Private Limited (Bitsila). It was introduced in 2020. It operates as an ONDC seller platform with ‘full-stack omnichannel’ and ‘hyperlocal commerce’ capability. Open Network for Digital Commerce (ONDC) is an initiative of the Ministry of Commerce and Industry. The aim is to create a convenient model to help small retailers take advantage of digital commerce. Pi Platforms is a leading buyer platform on the ONDC network and the Bitsila acquisition will further boost its commerce activities, the source said.
Paytm shares fall for the second consecutive day
Shares of One97 Communications Limited, which owns the Paytm brand, fell for the second consecutive day on Friday. The company’s shares fell 8.67 percent to Rs 408.30 on BSE. The company’s shares fell 8.20 percent to Rs 410 on the National Stock Exchange (NSE). Shares of One97 Communications Limited fell by 10 percent on Thursday. Earlier, after three sessions of heavy decline, the stock had gained momentum last Tuesday.
Its shares fell by more than 42 percent in three sessions (between February 1 and 5) after the RBI crackdown. This saw a huge decline of Rs 20,471.25 crore in its market valuation. One97 Communications holds 49 per cent stake (directly and through its subsidiary) in PPBL. Company founder Vijay Shekhar Sharma holds 51 percent stake in the bank.
What did the RBI Governor say?
Reserve Bank of India Governor Shaktikanta Das had on Thursday said there were no systemic concerns and the action against Paytm was due to “lack of compliance”. There is speculation that following the RBI order, Paytm Payments Bank’s independent director Manju Aggarwal has resigned from the board of directors. According to sources, Aggarwal’s resignation became effective from February 1. The Reserve Bank of India (RBI) had on January 31 directed Paytm’s unit Paytm Payments Bank Limited (PPBL) not to accept deposits or top-ups in any customer account, prepaid instrument, wallet and Fastag after February 29, 2024. .
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