Paytm Undertakes Restructuring To Bring Key Units Under Direct Ownership

Paytm’s parent, One97 Communications, has approved an internal restructuring plan to bring several of its financial and technology subsidiaries under direct ownership.

In a filing with the exchanges, the company said the move is part of efforts to simplify its group structure, strengthen governance, and improve operational efficiency.

As part of the plan, Paytm will acquire about 51.22% equity shares of Paytm Financial Services Ltd (PFSL) from founder Vijay Shekhar Sharma and his entity VSS Investco Pvt Ltd for up to INR 50 Lakhs. After the transaction, PFSL will become a wholly owned subsidiary of One 97 Communications.

Following this, the entities in which PFSL holds stakes, Admirable Software, Mobiquest Mobile Technologies, Urja Money, and Fincollect Services, will also come under Paytm’s direct or indirect ownership. The fintech major said it plans to later move these holdings directly under One 97 Communications through intra-group transfers.

Among these, Admirable Software, which provides tech services, reported a total income of INR 44 Lakhs in FY25. Mobiquest, which runs loyalty and tech solutions, reported INR 33.43 Cr in top line, while Urja Money earned INR 18.59 Cr. Fincollect, which offers collection services, posted INR 220.47 Cr in revenue during the same year.

Paytm will also acquire remaining stakes in Paytm Emerging Tech Ltd (formerly Paytm General Insurance), Paytm Insuretech, and Paytm Life Insurance from Sharma and his owned entities for up to INR 3.52 Cr, making each a wholly-owned subsidiary.

Additionally, Paytm plans to increase its stake in Little Internet Pvt Ltd, which operates in the ecommerce segment, to around 78% from 62.53% by converting debentures and inter-corporate deposits worth about INR 15 Cr at face value.

The restructuring comes on the back of a series of portfolio moves by the fintech giant in the past year, aimed at refocussing its core business and simplifying ownership across group entities.

In August 2025, Paytm’s board approved investments worth INR 455 Cr across subsidiaries, including INR 300 Cr in its wealth and investment arm Paytm Money and INR 155 Cr in Paytm Services Pvt Ltd (PSPL), which provides manpower and related services.

Paytm Money, which offers stockbroking and mutual fund distribution, saw its turnover fall about 10% to INR 172.9 Cr in FY25 from INR 194.1 Cr in the previous year. However, Paytm remains bullish on the vertical’s long-term prospects.

CFO Madhur Deora said during the company’s Q1 earnings call that Paytm continues to perform strongly on the equity broking side. Earlier this year, SEBI approved Paytm Money’s licence as a research analyst, which could open a new revenue stream in wealth management.

Notably, Paytm also shut down its real money gaming operations earlier this year following the government’s ban on such games.

These internal moves come as Paytm begins to stabilise after a turbulent period marked by regulatory hurdles and product shutdowns. In September this year, over a year after halting its buy-now-pay-later product, the company relaunched Paytm Postpaid as a credit line on UPI, in partnership with Suryodaya Small Finance Bank.

The revamped service, titled “Spend Now, Pay Next Month”, enables users to access instant short-term credit for up to 30 days. The rollout is currently limited to select users, with a wider expansion planned in the coming months. Paytm had discontinued the Postpaid product in May 2024, citing a decline in asset quality across the lending ecosystem.

Shares of Paytm closed 2.65% higher at INR 1,277.3 on the BSE today.

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