Telecom tycoon Mittal seeking a stake in Indian fintech Paytm

Indian telecom tycoon Sunil Mittal, the founder and chairman of Bharti Airtel, wants to acquire a stake in Paytm by combining his financial services business with the payments bank of the fintech giant, according to those with knowledge of the situation.

Mittal wants to merge Airtel Payments Bank with Paytm Payments Bank through a stock deal and also buy Paytm shares from other shareholders, according to the people, who asked to remain anonymous because they were sharing private information.

Airtel and Paytm may not achieve an agreement at this point in the negotiations, people aware of the matter said.

Shares of Paytm, formerly One 97 Communications Ltd., have increased by roughly 40% since hitting a record low in November, as the company appears to be beginning to earn a profit.

As a result of efforts to increase client base, the company's third-quarter deficit was reduced, it reported in a filing with the exchange this month.

Airtel is the second-largest telecom player, and it is also highly present in other industries like broadband and DTH.

The company's billionaire owner is considering expansion into other industries as 5G usage surges.