One97 Communications Ltd. (OCL), the parent company of Paytm, has announced plans to invest up to ₹455 crore in two of its wholly owned subsidiaries — Paytm Money Ltd. (PML) and Paytm Services Pvt. Ltd. (PSPL). The investment is aimed at strengthening its broking and allied businesses at a time when competition in India’s wealth-tech and financial services sector is intensifying.
Breakdown of Investment
- ₹300 crore in Paytm Money Ltd. (PML)
- This entity operates Paytm’s stockbroking and wealth management business.
- PML has been facing headwinds, including a decline in active customers over the past 18 months, as new-age discount brokers and fintech startups capture market share.
- The infusion is expected to support PML’s technology stack, compliance framework, and customer acquisition efforts.
- ₹155 crore in Paytm Services Pvt. Ltd. (PSPL)
- PSPL primarily handles manpower supply and operational services for the Paytm ecosystem.
The company clarified that the investment will be carried out through a rights issue of equity shares and will not alter OCL’s 100% ownership in either subsidiary. The transactions are expected to be completed within 30 days.
Subsidiary Performance (FY25)
- Paytm Money Ltd. reported a turnover of ₹173 crore in FY25, down 11% from ₹194 crore in FY24, reflecting the challenges in scaling its broking business amidst strong competition.
- Paytm Services Pvt. Ltd. posted a turnover of ₹252 crore during the same fiscal.
First Games Business Update
Separately, Paytm confirmed that First Games, its joint venture in the online gaming segment, has discontinued its real-money gaming operations following the government’s ban on such games.
The platform will now pivot towards social and skill-based gaming formats that comply with the new legal framework. According to exchange filings:
- The contribution of First Games to OCL’s consolidated results is less than 1%.
- The company has nil carrying value of investment in First Games as of June 30, 2025.
- However, OCL has an exposure of about ₹200 crore, raising questions on how the ban may impact loan recoveries from the venture.
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