One97 has already created a new entity called Paytm E-Commerce Pvt. Once completed, the restructuring will allow Paytm E-Commerce to independently raise money from investors. Once the transfer of the e-commerce business to this entity is completed, its shareholding structure will mirror that of parent One97’s, according to the people mentioned above. Sharma, without commenting on the specifics of the restructuring, said “Payments and e-commerce have different growth cycles and we believe e-commerce business can be a sizeable opportunity going forward.”Mint reported in May that Paytm was looking to spin off its e-commerce marketplace business. Paytm Payments Bank will be a subsidiary of One97, with Sharma holding a 51% stake.

Source: Mint August 23, 2016 20:15 UTC