Bharti Airtel has been among the top telecom service providers in India since the mobile phone revolution started. With an aim to boost Airtel's own online payment services, Chairman Sunil Mittal sought to buy stakes in one of India's biggest e-wallets, Paytm. But the negotiations have reportedly broken down after the two failed to agree on the transfer of stakes.
It was earlier reported that Sunil Mittal had been trying to buy Paytm stocks from other share holders of the firm. He wanted to bundle Airtel Payments Bank into Paytm, and the startup's representatives weren't ready to give up control over management. According to recent reports, Paytm representatives have confirmed that they aren't part of any discussions about a stake sale.
Paytm's top backers SoftBank from Japan and China's Ant Group, are also discussing the sale of their shares in the firm, to keep their holdings below 25 per cent. Paytm's shares haven't been able to rise above the IPO price, after its stock market debut in 2022 failed. On the other hand, Airtel Payments Bank turned profitable in FY21, with 129 million customers.
But the disagreement about the business model and management control has reportedly prevented the two from getting merged.
