Paytm Restructures Operations, Brings Key Business Units Under Direct Ownership

One97 Communications, the parent company of Paytm, has authorised an internal reorganisation plan to directly own a number of its technological and financial businesses. The business stated in a filing with the exchanges that the action is a component of its endeavours to enhance operational efficiency, fortify governance, and streamline its group structure.

According to the plan, Paytm will pay up to INR 50 lakhs to founder Vijay Shekhar Sharma and his company VSS Investco Pvt Ltd for around 51.22% of the equity shares of Paytm Financial Services Ltd (PFSL). Following the purchase, One 97 Communications will acquire full ownership of PFSL.

Later Paytm Plans to Move all these Entities Under One97 Communications

After this, Paytm will directly or indirectly own Admirable Software, Mobiquest Mobile Technologies, Urja Money, and Fincollect Services, the companies in which PFSL has interests. The fintech major stated that it intends to use intra-group transfers in the future to transfer these holdings directly under One 97 Communications. Of them, Admirable Software, which offers IT services, reported INR 44 lakhs in FY25 revenue.

Urja Money made INR 18.59 Cr, while Mobiquest, which provides tech and loyalty solutions, recorded a top line of INR 33.43 Cr. In the same year, Fincollect, a company that provides collection services, reported revenue of INR 220.47 Cr. For a maximum of INR 3.52 Cr, Paytm will also buy the remaining shares in Sharma and his owned companies’ Paytm Emerging Tech Ltd (previously Paytm General Insurance), Paytm Insuretech, and Paytm Life Insurance, converting each into a wholly-owned subsidiary.

Additionally, Paytm intends to convert debentures and inter-corporate deposits valued at around INR 15 Cr at face value in order to enhance its ownership of Little Internet Pvt Ltd, an e-commerce company, from 62.53% to roughly 78%.

Why Paytm Opted for this Shift?

The reorganisation follows a year of portfolio changes by the fintech juggernaut with the goal of streamlining ownership among group companies and refocusing on its core business. The board of Paytm approved investments of INR 455 Cr across its subsidiaries in August 2025. These investments included INR 155 Cr in Paytm Services Pvt Ltd (PSPL), which offers manpower and related services, and INR 300 Cr in Paytm Money, the company’s wealth and investment arm.

Paytm Money, which provides mutual fund distribution and stockbroking, reported a 10% decline in turnover from INR 194.1 Cr to INR 172.9 Cr in FY25. Paytm is still optimistic about the vertical’s long-term prospects, though. During the company’s Q1 earnings call, CFO Madhur Deora stated that Paytm is still doing well in the share broking space.

Paytm Money’s licence as a research analyst was issued by SEBI earlier this year, potentially creating a new source of income in the wealth management industry.