On October 15, the board of One 97 Communications approved a series of intra-group transactions aimed at consolidating its financial and technology subsidiaries under direct ownership.
Paytm’s parent company, One 97 Communications, has announced an internal restructuring to simplify its corporate framework by bringing key subsidiaries under direct ownership, founder Vijay Shekhar Sharma said in a company filing dated October 15.
Paytm has also shifted its offline merchant payments business to Paytm Payments Services Ltd (PPSL), a wholly owned subsidiary, in compliance with RBI regulations, the company said.
On October 15, the board of One 97 Communications approved several intra-group transactions to consolidate its financial and technology entities under direct ownership. As part of the restructuring, One 97 will acquire approximately 51.22% equity in Paytm Financial Services from founder Vijay Shekhar Sharma and his entity VSS Investco for up to ₹0.5 crore at fair value. This will make Paytm Financial Services a wholly owned subsidiary.
Other subsidiaries—including Admirable Software, Mobiquest Mobile Technologies, Urja Money, and Fincollect Services—will also become wholly owned subsidiaries through direct or indirect ownership. One 97 plans to transfer shareholdings of these entities directly under its ownership via intra-group transactions. These companies operate in technology, loyalty, and collection services.
In FY25, the subsidiaries reported the following total incomes:
- Admirable Software: ₹0.44 crore
- Mobiquest: ₹33.43 crore
- Urja Money: ₹18.59 crore
- Fincollect Services: ₹220.47 crore
Paytm will also acquire the remaining stakes in Paytm Emerging Tech (formerly Paytm General Insurance), Paytm Insuretech, and Paytm Life Insurance from founder Vijay Shekhar Sharma and his entities for up to ₹3.52 crore, based on net asset value. Following this acquisition, all three companies will become wholly owned subsidiaries.
Additionally, the company plans to increase its stake in Little Internet Pvt Ltd from 62.53% to around 78% by converting optionally convertible debentures and inter-corporate deposits worth approximately ₹15 crore at face value.
Paytm stated that all related-party transactions have been independently valued and carried out at arm’s length in compliance with SEBI guidelines. The restructuring is intended to simplify ownership, strengthen governance, and enhance operational agility.
Transfer of Offline Merchant Payments Business
In a separate move, Paytm has transferred its offline merchant payments business to Paytm Payments Services Ltd (PPSL) to comply with RBI directives issued on September 15, 2025. The transfer, structured as a slump sale on a going concern basis, will consolidate both online and offline merchant payment operations under PPSL, which has received in-principle RBI approval as a payment aggregator.
The business being transferred includes merchant services via QR codes, Soundbox, and EDC machines. The transaction will be executed at book value and will not impact consolidated financials, as PPSL is a wholly owned subsidiary.
For FY25, the Offline Merchant Payments Business reported revenue of approximately ₹2,580 crore, representing 47% of Paytm’s standalone revenue, with a net worth of ₹960 crore, or 7.45% of the standalone net worth.
The transfer is expected to be completed by December 31, 2025, subject to shareholder and board approvals, through a Business Transfer Agreement between One 97 Communications and PPSL. The company clarified that this is not part of any scheme of arrangement and is aimed at aligning operations within a single regulated entity for efficiency and compliance.
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