Paytm Achieves Profitability as Chinese Investor Antfin Exits Fintech

In a significant development, Paytm, the Indian payments platform, has seen a complete exit of its Chinese investors. On August 5th, 2025, Ant Group's Antfin (Netherlands) Holding B.V. sold its entire 5.84% stake in Paytm through a bulk deal valued at around ₹3,800 crore.

This move marks the end of Chinese ownership in Paytm, as Antfin was the last remaining Chinese shareholder. The exit aligns with broader regulatory and geopolitical dynamics, as Paytm has faced scrutiny in the past over foreign ownership and data localization concerns.

Interestingly, Paytm's operating performance has seen a sharp reversal since the regulatory disruption in January 2024. The company has reported profitability in Q1 FY26, with a significant improvement in contribution margin and controlled indirect expenses. This turnaround has the potential to trigger a rapid rise in absolute profits, with the focus shifting to sustainable growth.

Furthermore, Paytm's pre-IPO cap table has undergone a near-complete churn, with major early backers like Alibaba, SoftBank, and Berkshire Hathaway exiting fully over the past two years. Elevation Capital (formerly SAIF Partners) now stands as the only significant pre-IPO investor still holding a stake of 15.4% as of June 2025.

Analysts believe that the exit of Antfin could provide a positive boost to Paytm's stock, as ownership concerns ease and supply pressure decreases. The clean-out trade is expected to allow investors to refocus on the company's fundamentals and future growth prospects.