Paytm brings entities under direct ownership to simplify structure

The move consolidates Paytm's offline and online merchant payments and brings insurance and lending arms under One97 Communications' direct control

One97 Communications (OCL), the parent company of Paytm, is simplifying its group structure by bringing multiple business units under its direct ownership and consolidating its offline merchant payments business, the company said on Tuesday.

 

The internal restructuring aims to streamline the corporate structure and improve business efficiency by bringing all major financial and payment entities directly under One97’s control.

 

Merchant payments consolidation

 

Paytm said it has transferred its offline merchants’ payment business to Paytm Payments Services Ltd (PPSL) to comply with Reserve Bank of India (RBI) regulations governing payment aggregators.

 

The consolidation of its online and offline merchant payment operations will allow Paytm to manage both segments under a single regulated entity, which has received in-principle approval from the RBI to conduct online payment aggregation.

 

Paytm Financial Services becomes wholly owned

 

Following the restructuring, Paytm Financial Services Ltd (PFSL) will become a wholly owned subsidiary of One97 Communications after the parent company acquires around 51.2 per cent stake from founder Vijay Shekhar Sharma and his investment firm VSS Investco for up to ₹50 lakh at fair value.

 

PFSL holds investments in entities such as Admirable Software, Mobiquest Mobile Technologies, Urja Money Private, and Fincollect Services. These companies will become wholly owned subsidiaries of One97 Communications through direct and indirect shareholdings once intra-group transactions are completed.

 

Consolidation of insurance businesses

 

Paytm will also acquire stakes from Sharma and his holding companies in various insurance-related business units for an aggregate value of ₹3.52 crore.

 

This includes:

 

51 per cent stake in Paytm Emerging Tech (PETL), formerly known as Paytm General Insurance Ltd

67.55 per cent stake in Paytm Insuretech Pvt Ltd

51 per cent stake in Paytm Life Insurance

 

These insurance arms will become wholly owned subsidiaries of One97 Communications after the transaction.

 

Increased stake in Little Internet

 

The company will also raise its holding in Little Internet from 62.53 per cent to about 78 per cent through the conversion of optionally convertible debentures (OCDs) and inter-corporate deposits worth approximately ₹15 crore at face value.

 

Entity-wise income for FY25

Entity FY25 Income (₹ crore)

Offline Merchants Payment Business 2,580.00

Paytm Financial Services 0.51

Admirable Software 0.44

Mobiquest Mobile Technologies 33.43

Urja Money 18.59

Fincollect Services 220.47

Paytm Emerging Tech Nil

Paytm Insuretech 0.49

Paytm Life Insurance Nil

Little Internet 0.68

 

The consolidation reflects Paytm’s ongoing efforts to simplify its ownership structure, comply with regulatory norms, and enhance operational control across its financial and payments ecosystem.