Paytm parent restructures to bring entities under direct ownership
15 Oct 2025, 08:34 PMPaytm has also approved the transfer of its offline merchant payments business to its wholly-owned subsidiary, Paytm Payments Services Ltd.
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One 97 Communications Ltd, the parent of fintech company Paytm, said its board of directors has approved a slew of transactions as part of its internal restructuring process to bring several of its financial and technology subsidiaries under direct ownership.
As part of the transaction, Paytm will acquire around 51.22% equity shares of Paytm Financial Services Ltd from Vijay Shekhar Sharma, founder and CEO, Paytm, and VSS Investco Pvt Ltd for up to Rs 0.5 crore, it said in a filing to the stock exchanges.
Paytm Financial Services, which was incorporated on March 2017, will become a wholly-owned subsidiary upon completion of the transaction.
Following this, entities in which Paytm Financial Services holds stakes -- Admirable Software, Mobiquest Mobile Technologies, Urja Money, and Fincollect Services -- will also become wholly-owned subsidiaries through direct and indirect ownership.
Post this, the shareholdings of Admirable, Mobiquest, Urja, and Fincollect will be directly transferred under One 97 Communications through intra-group transactions, the filing said.
The filing showed that Admirable Software recorded total income of Rs 0.44 crore in fiscal ended March 31, 2025; Mobiquest clocked Rs 33.43 crore; Urja Money reported Rs 18.59 crore; and Fincollect recorded Rs 220.47 crore.
The filing further said that Paytm will also buy the remaining stakes in Paytm Emerging Tech Ltd (formerly Paytm General Insurance), Paytm Insuretech, and Paytm Life Insurance from Sharma and his 100% owned entities for a combined consideration of up to Rs 3.52 crore, based on net asset value.
Following the transaction, these entities will become wholly-owned subsidiaries.
The filing also showed that Paytm will raise its stake in Little Internet Pvt Ltd from 62.53% to about 78% through the conversion of optionally convertible debentures and inter-corporate deposits worth about Rs 15 crore at face value.
The total income of Little Internet for the financial year ended on March 31, 2025 was Rs 0.68 crore.
In a separate filing, Paytm has also approved the transfer of its offline merchant payments business to its wholly-owned subsidiary, Paytm Payments Services Ltd, to comply with the Reserve Bank of India's (RBI) norms for payment aggregators (PAs).
The company's offline merchants payment business consists of offline merchants serviced through QR, soundbox, and EDC machine payments, among others. Its revenue in FY25 was Rs 2,580 crore, representing 47% of the total revenue of Paytm on a standalone basis.
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