The financial services arm of Reliance Group had invested Rs 10 crore for this stake in Paytm.
The deal gives a valuation of over $4 billion to PayTm, which is already backed by Alibaba group as a strategic investor.
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A Reliance Capital spokesperson declined to comment on the deal while PayTm spokesperson also did not comment.
Earlier, Reliance Capital had said it would trim its proprietary investment portfolio as part of its plans to monetise non-core assets.
In December last year, PayTm founder and CEO Vijay Shekhar Sharma had sold 1 per cent of his holding in One97 Communications, the parent firm of the digital payments firm, to raise about Rs 325 crore.
This money was to be pumped into the group's payments bank operations, which are slated to commence soon.
Alibaba Singapore E-commerce, along with investment firm SAIF Partners, is also slated to invest $200 million in PayTm's online marketplace unit.