As part of internal restructuring and growth strategy, Paytm redirects focus to wealth tech and core services while exiting real money gaming amid regulatory clampdowns.
INR 455 Cr Infusion To Strengthen Subsidiary Operations
Fintech giant Paytm has announced a total investment of INR 455 Cr into two key subsidiaries:
- INR 300 Cr into Paytm Money, its investment and wealth management arm.
- INR 155 Cr into Paytm Services Pvt Ltd (PSPL), which provides manpower supply and related services.
The move is aimed at bolstering Paytm’s long-term growth through diversification into fee-based financial services and support infrastructure.
Paytm Money: Capitalising on Wealthtech Momentum
The INR 300 Cr equity infusion into Paytm Money will be through the issuance of 30 Cr new equity shares at a face value of INR 10 each.
- Paytm Money offers services such as stock broking, mutual fund distribution, and recently became a SEBI-registered research analyst.
- The SEBI license is expected to unlock new income streams in wealth advisory.
- However, its turnover dipped by 10% YoY to INR 172.9 Cr in FY25.
Leadership shifts also marked this period — Sandiip Bharadwaj took over as CEO from Rakesh Singh, who moved to a new role within the Paytm Group.
PSPL Sees 64% Revenue Growth; CEO Resigns
The INR 155 Cr investment into PSPL aligns with the company’s strong growth trajectory.
- PSPL’s revenue jumped 64% YoY to INR 252.4 Cr in FY25.
- The subsidiary, formerly Balance Technology Pvt Ltd, was acquired by Paytm in 2018.
Varun Sridhar, the outgoing CEO of PSPL, has stepped down to launch a new wealthtech venture. Sridhar previously led Paytm Money before transitioning to PSPL.
Real Money Gaming Operations Shut Down
Paytm has officially shut down real money gaming (RMG) activities under its First Games brand.
- First Games, a joint venture with AGTech Holdings, is no longer offering paid gaming services following the government’s 2025 ban on RMG.
- The investment value of the subsidiary is now ‘nil’, and Paytm has no significant financial exposure beyond a shareholder loan of INR 200 Cr.
- As part of restructuring, a 55% stake in First Games is being transferred from Paytm Cloud Technologies to PSPL for INR 140 Cr.
Additional Restructuring Moves
Paytm is also consolidating control over Foster Payment Networks Pvt Ltd, an associate entity.
- It will acquire a 100% stake through a transfer of 90.01% from Paytm Financial Services (INR 54.5 Cr) and 9.99% from another shareholder (INR 6.5 Cr).
- Foster Payments will become a wholly owned subsidiary of One97 Communications Ltd (OCL).
A Profitable Quarter Amid Strategic Shifts
The restructuring and investment spree follow Paytm’s return to profitability in Q1 FY26, reporting:
- INR 122.5 Cr net profit, compared to a loss of INR 840.1 Cr in Q1 FY25.
- Share prices closed 0.9% higher at INR 1,276.20 on the BSE after the announcement.
