Antfin Sells Final 4% in Paytm for ₹2,103 Cr, Triggers Ownership Shift to Goldman and Western Giants
The digital payments sector in India has just witnessed a major shift. Antfin, the financial arm of China’s Ant Group, has officially ended its investment journey with Paytm. The move comes after Antfin sold its last 4% stake in Paytm for around ₹2,103 crore, or nearly $246 million, through bulk block deals.
The sale was managed by Antfin Netherlands Holding BV. It involved over 2.55 crore shares traded at an average price of ₹824.67 per share, about 3.7% lower than Paytm’s last closing price. Among the key buyers was Goldman Sachs (Singapore), which picked up a sizable chunk of shares.
Immediate Market Reaction
The impact was immediate. Paytm’s stock dipped 4% on the day the deal was announced. This decline added to an already tough year for the stock, which has fallen over 14% since the start of 2025. Meanwhile, India’s main market index has risen 3.2% during the same period.
The timing and size of the discount suggest that the market expected the exit, given Antfin’s steady reduction in stake over the past year.
Strategic and Regulatory Implications
But this isn’t just a story about one transaction. It reflects a larger trend. Chinese investors, including Antfin, have been steadily pulling out of Indian fintech firms. Along with Antfin, SoftBank and even Berkshire Hathaway have adjusted their positions in the sector. The reasons go beyond numbers. Geopolitical tensions and changes in Indian regulatory policies have driven many of these decisions.
Interestingly, Antfin’s exit from Paytm comes with a tax twist. The deal qualifies for exemption under India’s Double Taxation Avoidance Agreement with the Netherlands. Since Antfin’s stake had dropped below 10% and the shares went to a foreign entity, the sale avoids Indian capital gains tax. That legal detail could influence how other foreign investors choose to exit in the future.
Ownership Restructuring
At a deeper level, this deal reshapes the very structure of Paytm’s ownership. Antfin’s complete exit marks the end of Chinese strategic control in the company. This aligns with India’s regulatory aim to limit Chinese influence in vital tech sectors.
The opening created by Antfin’s exit now gives more space to domestic and Western institutional investors. With players like Goldman Sachs and Citigroup stepping in, the shift appears well underway.
Financial Performance and Outlook
Financially, the timing of the sale speaks volumes. Paytm has been under pressure. Its operational revenue dropped 16% year-on-year. Net loss for the recent quarter was ₹544.6 crore, despite higher income from other sources. The company is inching toward profitability, with management hopeful about hitting that goal soon. However, the path remains full of hurdles.
Some analysts believe that shedding Chinese ownership could help boost Paytm’s image among Indian regulators and the public. Trust and transparency are becoming as important as technology and market size. In that light, a leaner, more localized ownership structure could work in Paytm’s favor.
Strategic Shift in Business Model
The exit has also reinforced an evolving strategy within Paytm. After shuttering its payments bank, the company has mainly turned towards the UPI kind of payments and distribution of financial products, which are basically attempts at repositioning for bigger and stable growth.
Conclusion
The Indian digital payments sector is fast growing but also growing increasingly competitive. Investors, both global and local, are now reviewing their stakes based on regulation, returns, and regional policies. Perhaps, the exit by Antfin is a signal to a bigger realignment. More exits may, therefore, follow, but those very exits might promote new alliances and a bigger institutional backing.
The market responded somewhat cautiously over the short term, but in the longer view, it could become quite hopeful. Perhaps there is a possibility of an enlarged shareholder base, less foreign strategic control, and a heavier skew toward profitability making Paytm more attractive. Most probably, the future of the company in these coming quarters will decide whether this map switching brings gold or gray.
In short, this exit is more than just a sale. It reflects shifting global winds, changing investor goals, and India’s growing control over its fintech future. The exit of a long-term backer like Antfin is the end of one chapter—and possibly the beginning of a stronger, more rooted one for Paytm.
