Paytm Nears Acquisition of E-commerce Startup Bitsila Amid Payments Bank Crisis

In a strategic move to expand its e-commerce footprint, digital payments giant Paytm is reportedly in the advanced stages of acquiring Bengaluru-based startup Bitsila. The deal, as per a Moneycontrol report, is expected to close within the next week. Bitsila, established in 2020 by Dasharatham Bitla and Sooryah Pokkali, operates as a seller-side platform on the Open Network for Digital Commerce (ONDC), enhancing transaction capabilities for businesses.

The acquisition comes at a critical time for Paytm, following the Reserve Bank of India’s (RBI) recent crackdown on its subsidiary, Paytm Payments Bank, for “persistent non-compliance” issues, leading to a prohibition on accepting new deposits after February 29. However, Paytm founder and CEO Vijay Shekhar Sharma assures that the regulatory actions against Paytm Payments Bank will not affect the Paytm app’s operations, which remains fully functional and committed to offering seamless payment solutions.

This acquisition will enable Paytm, already a buyer app on the ONDC, to deepen its engagement within the digital commerce network, marking a significant step towards bolstering its e-commerce capabilities amidst ongoing regulatory challenges. The company reassures users and merchant partners that services like Paytm QR, Soundbox, and card machines will continue to operate as usual, underlining its dedication to financial inclusion and seamless payment solutions across India.

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