Gautam Adani, the chairman of the Adani Group conglomerate, is reportedly in talks with Vijay Shekhar Sharma, founder and CEO of Paytm, regarding a potential stake acquisition in Paytm’s parent company, One97 Communications. This move, if confirmed, would mark Adani Group’s entry into the burgeoning Indian fintech sector.

News of the discussions emerged from a Times of India report citing unnamed sources. The report claims Sharma met with Adani in Ahmedabad to finalize details of the potential deal. However, One97 Communications issued an official statement denying any such discussions.

Despite the denial, the report sparked a surge in One97 Communications’ stock price, highlighting investor interest in the potential collaboration. Adani Group is a diversified conglomerate with interests in infrastructure, commodities, and energy. A foray into fintech would represent a strategic move to capitalize on India’s rapidly growing digital payments market. Paytm, meanwhile, is a leading player in this space, offering mobile payments, e-commerce, and financial services.

While the official status of the talks remains unclear, the potential partnership between Adani and Paytm could have significant implications for the Indian fintech landscape. Adani’s financial muscle could provide Paytm with the resources to further expand its reach and services. Conversely, Paytm’s established fintech expertise could offer valuable insights and a user base for Adani’s future fintech ambitions.

The coming days and weeks will likely reveal whether these talks translate into a concrete deal. Regardless of the outcome, the news underscores the growing importance of fintech in India’s economy and the potential for further consolidation within the sector.