Mukesh Ambani to buy Paytm’s wallet business? Jio Financial denies reports

Jio Financial Services “has not been in any negotiations” to acquire Paytm’s wallet business, it said in a clarification to the exchanges after reports stated that the Mukesh Ambani-led financial services provider was in talks to acquire Paytm wallet.

“We have always made and will continue to make disclosures in compliance with our obligations,” the company said in its statement to the exchanges.

On Monday, Jio Financial Services Ltd (JFS) shares surged over 15 per cent after it was reported that the Mukesh Ambani firm was one of the frontrunners to acquire Paytm’s wallet business amid the ongoing crisis at Paytm.

Crisis at Paytm

Paytm is mired in controversy after the Reserve Bank of India (RBI) barred Paytm Payments Bank from undertaking any banking activities after February 29. The central bank cited non-compliance with KYC guidelines and other issues.

What reports claimed on Mukesh Ambani’s Paytm bid?

A report in Hindu Business Line claimed that HDFC Bank and Jio Financial Services are amongst the top contenders for Paytm’s wallet acquisition. The report added that Jio Financial Services has also applied for approval to conduct mutual fund activities in collaboration with BlackRock Financial Management. Both are planning an initial joint investment of $150 million each, it claimed.

“With KYC-related issues compounding for Paytm, they’ve not been as aggressive with the business as they were before 2022 in the wallets business and if valuations on the table were decent, the talks with Jio would have fructified much earlier,” the report quoted a source as saying.

However, Jio Financial Services- which operates financial services through subsidiaries like Jio Insurance Broking (JIBL), Jio Payment Solutions (JPSL), and Jio Finance (JFL)- clarified that it has not been in any negotiations in this regard.