Elevation Capital is set to offload shares worth up to ₹2,002 crore (about $210 million) in Paytm parent One 97 Communications Ltd through a block deal on Tuesday, according to the offer terms reviewed by Mint,
The venture capital firm will also offer shares in Meesho Ltd, along with Peak XV Partners, worth a combined ₹1,912 crore (about $201 million) through a separate block deal on the same day, according to a separate term sheet reviewed by Mint.
Morgan Stanley India is serving as the placement agent for both deals.
Elevation's stake sale in Paytm comes days after the company dropped plans for a proposed bonus share issue.
Saif Partners India IV Ltd, Saif III Mauritius Co. Ltd, and Elevation Capital V Ltd, listed as public shareholders of Paytm, are offering up to 14.9 million shares, which equal 2.3% of the company's shares, according to the term sheet.
Saif Partners India IV holds 3.63% of the company's shares, while Saif III Mauritius Co. holds 8.55%. Elevation Capital V holds less than 1%.
The floor price is set at ₹1,339.65 per share, implying a 4.99% discount to the closing price of ₹1,410 in Mumbai on Monday. The sellers are subject to a 60-day lock-up period following the trade.
Multibagger returns
Elevation Capital, which invested in Paytm in 2007, is one of the earliest backers of the Vijay Shekhar Sharma-led firm. It has invested close to $90 million in the financial technology giant and is sitting on multibagger returns.
Before offloading 1.86% stake in the scrip in November 2025, which was followed by a 1.34% selldown in May, Elevation held around 15% in Paytm even as marquee backers such as Berkshire Hathaway and SoftBank completely exited the company over time.
On 20 July, the Paytm board reviewed an earlier proposal for a bonus share issue but decided not to proceed. The board said it remained focused on compounding growth and profitability to create long-term shareholder value and, after due deliberation, concluded that prioritizing business growth is in the best interest of shareholders.
In the June quarter, One 97's revenue from operations rose 28% year-on-year to ₹2,448 crore from ₹1,918 crore in the year-ago quarter, while increasing 8% sequentially from ₹2,264 crore in the March quarter.
The growth was primarily led by its payment services business, where revenue rose 33% on-year to ₹1,384 crore, supported by higher merchant payment volumes and continued expansion of its payments ecosystem.
The company said its gross merchandise value (GMV) growth accelerated to 31% on-year in Q1FY27, compared with 27% in Q4FY26 and 24% in Q3FY26.
On the bottom line, net profit jumped 79% on-year to ₹220 crore, up from ₹123 crore in the year-ago quarter. On a comparable basis, excluding the Payments Infrastructure Development Fund (PIDF) incentive, PAT surged 207% to ₹212 crore from ₹69 crore.
Elevation and Peak XV's stake sale in Meesho also comes on the heels of the e-commerce marketplace's June-quarter earnings. The recently listed company reported a consolidated net loss of ₹132.8 crore in the first quarter of FY27, compared with a loss of ₹289.4 crore a year ago.
The shares are being offered at ₹182.08 apiece, a 5% discount to Monday's closing price.
Mint could not immediately ascertain the size of each investor's stake on offer. Elevation currently owns 12.4% of Meesho, while the two Peak XV entities participating in the block deal together hold 11.45%.
"On the surface, this really looks like basic fund lifecycle mechanics," an investment banker tracking new-age companies in India's capital markets said on condition of anonymity.
“Elevation has stayed invested in Paytm far longer than usual VC funds, and at some point, they will start monetizing part of their returns. Trimming public stakes like Paytm and Meesho, for both Elevation and Peak, isn't exactly a knock on the fundamental stories of these companies," the person added.
On sale
The sales would make Paytm and Meesho the latest new-age companies to see marquee investors pare or sell their stakes. On 23 July, Fidelity-backed Eight Roads Ventures, Walmart-owned Flipkart Internet, and IMM India Fund offered to sell a combined stake of up to 9.08% in Shadowfax Technologies Ltd for around $100 million.
Before Shadowfax, eyewear retailer Lenskart Solutions Ltd had seen early backers offload their holdings once their lock-ins expired. Singapore's sovereign wealth fund Temasek sold a 2% stake in Lenskart for ₹1,940 crore this month, after Abu Dhabi's sovereign wealth fund sold a 2.3% stake for a similar amount. On 3 June, a SoftBank entity sold a 3.25% stake through a block deal worth ₹2,873 crore.