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.
Quick
Shots
•Paytm initiates major restructuring
to bring key business units under direct ownership of parent company One97
Communications.
•Move aims to boost operational
efficiency, strengthen governance, and simplify group structure.
•Paytm to buy 51.22% stake in Paytm
Financial Services Ltd (PFSL) from founder Vijay Shekhar Sharma and VSS
Investco Pvt Ltd for up to INR 50 lakh.
•Post-acquisition, One97
Communications will fully own PFSL.
On July 5, the Alibaba Group affiliate business sold 3.73 Cr shares of the fintech giant through open-market transactions for INR 3,980.7 Cr, a day after rumours circulated that Antfin was seeking to sell its remaining interest in Paytm.
Societe Generale, My Asian Fund Among Key Buyers
Antfin sold the shares at an average selling price of INR 1067.6 each, according to BSE data. This was about 1% less than Paytm’s closing price of INR 1,078.3 on 4 August. Societe Generale acquired 67.5 lakh shares, while My Asian Opportunities Master Fund L snatched up 35 lakh of the shares that flooded the market.
Antfin to Sell Remaining Stake via INR 3,800 Cr Clean-Out Deal
According to a CNBC report, Antfin Holding BV, a division of Alibaba Group, intends to sell its remaining 5.84% share in One 97 Communications, the parent company of financial giant Paytm, through a clean-out block deal of INR 3,800 Cr.
The sale’s floor price is INR 1,020 per share, which is 5.4% less than the BSE’s closing price of INR 1,078.30 on 4 August. Antfin would completely leave the Indian fintech company with the deal, which is anticipated to be completed in a single tranche.
Final Exit Follows Earlier INR 2,103 Cr Stake Sale in May
This action comes after Antfin sold a 4% interest for INR 2,103 Cr in May 2025. Over 2.55 Cr shares were sold in that transaction at an average price of INR 824.67, which was 3.72% less than Paytm’s most recent closing price at the time. Goldman Sachs (Singapore) had acquired 37.25 lakh shares in that transaction at that point.
Paytm’s Performance Boosts Investor Confidence
In just three months, Antfin will have sold off almost 10% of its Paytm stock, marking a calculated withdrawal following years of investment. Antfin had roughly 23.8% of the business at its height.
The anticipated exit follows Paytm’s first-ever quarterly net profit of INR 122.5 Cr in Q1 FY26, which was achieved after the company reported a loss of INR 839 Cr the previous year. EBITDA was positive at INR 71.5 Cr with a 3.7% margin, while its revenue increased 27.7% YoY to INR 1,917.5 Cr.
Impact: China’s Stake in Paytm Nears Zero
Over the past month, the company’s stock has climbed by more than 20% as a result of rising investor confidence and a growth in mutual fund participation. The agreement would further lessen China’s involvement in Paytm, which has already come under fire for issues with foreign ownership and data localisation.
Vijay Shekhar Sharma, the creator of Paytm, and his family members own Resilient Asset Management BV, an international company that holds a 19.31% stake in One97 Communications, making them the largest stakeholder overall.
The ministry of commerce and industry said in a statement on 26 February that the Department for Promotion of Industry and Internal Trade (DPIIT) and digital payments company Paytm have inked a memorandum of understanding (MoU) to promote innovation and quicken the expansion of fintech and manufacturing startups in India. Paytm will provide businesses with market access, financial opportunities, infrastructure support, and mentorship as part of the relationship.
According to the press announcement, the partnership’s goal is to assist fintech hardware entrepreneurs in developing and scaling payment and financial technology solutions by providing them with innovation assistance and mentorship. Through workshops and guidelines developed in partnership with government and industry entities, it will also offer regulatory and compliance support.
Offerings of the MoU
Through the partnership’s infrastructure and market access support, businesses may take advantage of Paytm‘s vast merchant network to test, validate, and improve their solutions. In front of senior representatives from both organisations, DPIIT Director Sumeet Kumar Jarangal and Paytm Founder and CEO Vijay Shekhar Sharma signed the Memorandum of Understanding. This collaboration with Paytm is an important step in bolstering India’s startup environment, according to DPIIT Joint Secretary Sanjiv. DPIIT wants to help entrepreneurs overcome obstacles, scale their businesses, and help India become a worldwide innovation hub by utilising Paytm’s fintech infrastructure and skills.
Paytm for Startups Initiative
Paytm will introduce specific programs to assist fintech hardware manufacturers, such as Soundbox and PoS/EDC device makers, in expanding effectively as part of its Paytm for Startups effort. Mentorship programs, financial access via investor connections and incubation programs, regulatory guidance through industry-focused workshops, and recurring tracking and effect evaluations are all part of the projects.
The Paytm Foundation will fund deep-tech startups in the fields of Mobility, agritech, Web3, and Climate Technology through its CSR division. According to Vijay Shekhar Sharma, the current period is the optimal moment for startups to begin and expand under the leadership of Prime Minister Narendra Modi. Paytm is dedicated to enabling business owners by providing access to state-of-the-art technology, financial support, and mentorship. Through this partnership, the company will guarantee that startups have the resources they need to thrive from the ground up.
Financial Dynamics of Paytm
Thanks to the rebound in its digital payments sector, the fintech giant reduced its consolidated net loss from INR 221.7 Cr in the December quarter of Q3 FY25 to INR 208.5 Cr, a 6% decrease. Additionally, Paytm’s operating revenue decreased 36% from INR 2,850.5 Cr in Q3 FY24 to INR 1,827.8 Cr in the reviewed quarter.
Nevertheless, Vijay Shekhar Sharma, Founder and CEO, stated that the fintech company is on course to achieve profitability in the upcoming quarter (Q1 FY26) in accordance with the management’s expectations. Additionally, Paytm CFO Madhur Deora stated on the Q3 FY25 earnings call that the business anticipates becoming profitable on an adjusted EBITDA basis within a quarter or two.
As the Vijay Shekhar Sharma-led fintech giant Paytm seeks to grow and monetise its tech-enabled payments and financial services in global markets, it intends to establish three new companies through its subsidiary Paytm Cloud Technologies in the United Arab Emirates, Saudi Arabia, and Singapore. The company stated in an exchange filing on January 20 that the board of its wholly owned subsidiary, Paytm Cloud Technologies Limited (PCTL), had given its approval for the three new businesses to be incorporated. These companies will become Paytm’s step-down subsidiaries after they are established. Paytm thinks there is room for growth in comparable foreign countries with its technology-driven merchant payments and financial services distribution business strategy in India. According to Paytm, the company has created a portfolio of cutting-edge hardware, software, and services in India that can be used and profited from globally.
Options Considered by Paytm
According to the publicly traded fintech, Paytm is looking into a number of options in these foreign markets, such as partnerships, local licensing, strategic investment, and inorganic growth. Within six months, the wholly owned subsidiaries will be established, requiring an initial investment of up to INR 20 Cr in one or more tranches for each of these business units. The board of Mobiquest Mobile Technologies, another Paytm affiliate, has given the company permission to sell off all of its 100% ownership in Xceed IT Solutions, a wholly owned subsidiary. Vineet Narang and Sabina Kamal, the current directors of Xceed IT, will purchase these shares for INR 60,728 in cash. In the information technology (IT) industry, Mobiquest Mobile Technologies offers computer programming, consulting, and associated services.
Financial Dynamics of Paytm
In the third quarter of the fiscal year 2024-25 (Q3 FY25), Paytm was able to reduce its consolidated net loss from INR 221.7 Cr in the previous quarter to INR 208.5 Cr, a 6% decrease. In the September quarter of the current fiscal year, the corporation declared a net profit of INR 930 Cr. From INR 2,850.5 Cr in the same time last year to INR 1,827.8 Cr in the current quarter, operating revenue fell 36%. On the other hand, it increased 10% from INR 1,659.5 Cr on a quarterly basis.
India’s Fintech Ecosystem Still Leading the Global Race
In spite of this downturn, the Indian fintech ecosystem is one of the top three globally financed fintech ecosystems in H1 2024, after the US and the UK. According to Tracxn’s Geo Semi Annual Fintech India Report for H1 2024, the ongoing funding winter and a number of other geopolitical challenges are to blame for the funding fall. Compared to one in H2 2023, two funding rounds totalling more than $100 million were observed during that time. These include the $120 million Series C funding round raised by lending platform Avanse and the $144 million Series D funding round raised by non-banking lender Credit Saison.
The Indian startup circuit has witnessed many astounding stories. The growth of many multinational companies has added to its worth and value as an ecosystem where everyone gets an opportunity to shine and rise. With the new era approaching, it is time to have a sneak peek into one of the most successful entrepreneurs, Vijay Shekhar Sharma. Well, if you are residing in India or if you have kept in touch with the Indian startup ecosystem, then you might have heard about Paytm. It is one of the first e-wallets and is still considered the representative of the Indian startup system in the e-wallet circuit.
Vijay Shekhar Sharma is a billionaire with a $1.2 billion net worth. Once, Sharma used to earn around Rs 10,000 a month when he was 27 years old and based in Aligarh. From the small town of Aligarh to being the head of one of the largest fintech companies focused on digital payments and wallet-based payments, the journey of Vijay Shekhar Sharma is as unique and interesting as it is inspiring.
So, let’s take a walk along the journey of Vijay Shekhar Sharma and get a glance at the key highlights of Vijay Shekhar Sharma’s Story, Education, net worth, obstacles & more.
Vijay Shekhar Sharma- Biography
Name
Vijay Shekhar Sharma
Born
8 July 1978 Aligarh, Uttar Pradesh, India
Citizenship
Indian
Education
B.Tech from Delhi College of Engineering (now Delhi Technological University)
Vijay’s story can be compared with that of Mahendra Singh Dhoni. Both of them came from small towns but were full of sheer determination and passion, and eventually brought about a big change in the system. In real life, Vijay is self-effacing and has no pretensions. He speaks from the heart. His colleagues love him because he is a genuine person who is kind to all. Talking about the Indian startup circuit, everyone loves him because he epitomizes startup resilience.
Vijay is further known for his love of rock music and rock concerts. The Paytm founder is also famous for his heartfelt speeches. Furthermore, he is a really cheerful person as a CEO and often takes the stage to deliver motivational speeches that are roaringly applauded both by the employees of Paytm and other audiences.
Whenever Vijay shared his life story, one would get the idea that he truly understands what it takes to succeed in the ever-changing and challenging world of entrepreneurship. He has been on the receiving side of the harsh times when one would have to toil hard with no guarantee of success. However, Vijay has a wonderful ability, which is to make others laugh because he admires his roots and failures.
The above-mentioned characteristics of Vijay make him one of the most charming CEOs in the country today. However, one must be aware of the fact that his self-effacing humour doesn’t take away Vijay’s staunch belief in inspiring change.
Vijay Shekhar Sharma- Overcoming The Tough Circumstances
Vijay was the third of four children born to school teacher Sulom Prakash and Asha Sharma, a homemaker. He has seen the tough life of the economically backward section of the country. When he was a 12-year-old kid who used to sport a chappal and visit his school, his batchmates had no money to afford a pair of slippers. After witnessing this, he wrote a poem expressing his bewilderment at the inequalities of life.
Vijay hailed from Aligarh, where he was based in a small town. Vijay was once considered an ineligible bachelor, earning around Rs 10,000 a month at the age of 27. Though the challenges tried hard to bring him down, he always had the ember in him to shine.
Sharma didn’t even have an educational background in English and was hence quite poor in the language. However, he didn’t shy away from it but taught himself English through rock music.
Vijay Shekhar Sharma was, nevertheless, quite inclined to literature, Hindi literature to be precise, since his early school days. He wrote many poems and even got some of them published. The Paytm chief recently shared on Twitter one of the poems he had written back in 1991 on August 6, 2022. The poem is titled “Vishwas Karo Karm Mein” and is motivational to the very brim, so much so that it strikes the right chords even with the netizens.
Just found my poem, from our school magazine published in 1991. 😊 I was in class 10 then. pic.twitter.com/84pVlrBGJw
Vijay was one of the two people from his village who went on to pursue engineering. Vijay holds an engineering degree from the prestigious Delhi Institute of Technology. As per Vijay, if one used to study in a Hindi-Medium school, he/she had to face many difficulties. A child reading in the 1990s framed Hindi-medium school rarely had access to books and coaching facilities! Therefore, Vijay realized he was alone on his path to success.
During his time at DTU, he expressed his life in a manner similar to the popular Bollywood movie Tare Zameen Par! That is, he could see the lips of his teacher moving, but he could not understand a single word! While preparing for the exams, he and his friends would read the answers and not know the questions because the questions were written in English. However, he conquered one of his greatest fears successfully!
Paytm, which was founded in August 2010, has always been highly valued as a company and features as one of the biggest digital payment services relied upon by merchants and users alike. Furthermore, it has recently witnessed one of the biggest IPOs in Indian history, which kickstarted on November 8, 2021. However, ever since the listing of Paytm shares, the company has witnessed some challenging drops in the share prices, which declined to a record low of nearly 37% to hit an all-time low of Rs 1,283 per share. Nevertheless, the shares of the company had finally seen a rise of 9% in prices, as reported on November 23, 2021.
Vijay Shekhar Sharma’s Paytm was recently barred by the RBI from onboarding new customers under its banking vertical, Paytm Payments Bank. This significantly affected Paytm’s performance on the share market. Right after the spreading of the news, the company’s shares tanked 14% to hit a new low of Rs 672 on the BSE in the intra-day trade on March 14, 2022. All of this started after it went for its public listing.
Paytm, which once commanded the market and looked forward to a magnanimous public listing with an issue price of Rs 2,150, has witnessed a considerable erosion of its value, which waned by 70%. As per the reports dated March 18, 2022, the Paytm Founder and CEO, Vijay Shekhar Sharma, has lost around Rs 88 crore daily after its stock market debut on November 18, 2022.
Paytm has seen a whole lot of controversies since the wake of the new year, 2022. Amidst the free fall of its shares that the fintech company is witnessing, reports of the arrest of the Paytm founder Vijay Shekhar Sharma were also circulated. Vijay Sharma was allegedly arrested and bailed on the same day, February 22, 2022, for hitting the vehicle of DCP (South Delhi) Benita Mary Jaiker. Though the fintech company and its founder are currently pitted against challenges on all sides, this too, will pass.
Vijay Shekhar Sharma- Converting The Obstacles Into Opportunities
Vijay Shekhar Sharma: Founder and CEO of Paytm and One97 Communications
The turning point in Vijay’s life came when he went to market one Sunday and picked up a Forbes magazine. He came to know about the success stories of mega-brands like Apple, Intel, and HP and how they became one of the biggest names in the startup circuit. Each of the companies had one thing in common: all of them were built from basement garages! Then, Vijay wanted to go to Silicon Valley. But, due to a lack of money and resources, that was never possible. Therefore, despite giving up, he taught me that even though Vijay couldn’t visit Silicon Valley, he could create one in India!
Hence, he started an internet company with his friend Hari during his college days in 1997. It was in their second year of college that Vijay started a company called XS Corps back in 1997. Both of them wanted to develop search engines, and they knew that the search engine would become the main attraction given the fact that the internet was taking giant strides in the technology circuit during that time. Reflecting on this, Harinder Takhar and Vijay Shekhar Sharma managed to build indiasite.net, which was made to serve as a search engine for a firm. After working on it strenuously for a period of 2 years, they managed to pull off a great deal and sold the website to US Lotus Interworks for a million dollars.
It was in the same year, early in his career, that Vijay Shekhar Sharma developed electronic itineraries for Jet Airways. He also made another website for India’s tourism department. In contrast to the other ventures in his professional career, where he was utterly serious, passionate, and dedicated, Sharma was really impatient when it came to studies. He often used to walk out of the examinations. I wanted to achieve a lot in a short span,” said Sharma.
Sharma’s company, XS Corps, was attempting to create a search engine in India. Though this idea could not be materialized then, due to the scarcity of funding, the company managed to create a content management tool, which helped several media agencies like Living Media and Express Group to host their content. In the final year of college, Sharma aimed to go for River Run Software, which offered the highest-paid job on campus. Sharma still has the memories of the interview day really fresh in his mind. It was one such occasion where he was under immense pressure, which was similar to some more instances. For instance, when he sat in front of Jack Ma or when he sat face to face with the RBI governor, it was the same inexplicable pressure that Vijay experienced.
XS Corps was acquired by a US entrepreneur in 1999 for $1 million of cash and some stocks. This gave him the opportunity to pay off his father’s debt, and in doing that, he left the job there. However, his parent insisted he join a real job, but his sheer determination towards developing a new company never allowed him to stay in the traditional job for a long period! Throughout his life, Vijay wanted to be a bird who had freedom; he never wanted to be a horse who ran the same track over and over again!
Hence, to pursue his dream, he founded One97 Communications in 2000 with an aim to create an online directory for people to access through SMS. Sharma managed to work on the idea and managed to expand other value-added services like live astrology, cricket, songs, and more. However, soon after, he realized that recovering money from telecom operators in India wasn’t as easy as it seemed. In his first tenure, he learned that cash flow matters, not profitability! With the lack of a collection team and mounting outstanding amounts, the company was on the verge of collapse, and Sharma again had to hit the roads for a new job in 2003.
This was because he was the victim of this cash flow problem, as his clients would never pay him on time. Sharma took up repairing computers against a daily wage and was forced to sell 40% of the company for Rs 8 lakh to his angel investor at that time. It was high time for Vijay as his sister’s marriage was coming up, and he wanted to secure that marriage. There was a big problem for the family as his father, even though he was clean on the loan defaulters sheet, was not granted a loan of 2 lakhs! Hence, by drawing inspiration, he developed Paytm, the platform that aimed to resolve the issues of the poor and economically backward sections of society. The platform was built for a shopkeeper or an auto-rickshaw driver who is never respected or liked by any financial institution.
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The platform has been synonymous with the rise of e-wallet in the country. The Paytm Payments Bank has become the first platform to offer a zero-balance account facility. This platform also offers UPI payments and shopping facilities. Paytm as a brand continues to rise in the modern-day era of e-commerce.
How to Be Fearless By Vijay Sharma – Founder of Paytm
Vijay Shekhar Sharma – Awards and Recognitions
Vijay Shekhar Sharma has received numerous awards and recognitions during his career, some of which are:
Received Best Serial Entrepreneur Award at Rural and Urban Development Summit 2022 from the Ministry of Housing and Urban Affairs, Govt. of India.
Forbes magazine has ranked me as the youngest Indian billionaire.
Vijay Shekhar Sharma was felicitated with the Yash Bharati Award, the highest civilian award from the Uttar Pradesh government.
He was ranked in the 62nd position in the Forbes list of the richest person in India in 2020.
He was listed as the youngest billionaire in India in 2017, with a net worth of $1.3 billion.
Time Magazine listed Sharma among the 100 most influential people in 2017.
Sharma was recognized by The Economic Times as the ET Entrepreneur of the Year for 2016.
He was also named the Dataquest IT Man of the Year in 2017.
Sharma was felicitated with an Honorary Doctorate from Amity University, Gurgaon, in 2016.
He received the title Businessman of the Year at the GQ Men of the Year Awards in 2016.
He also became the NDTV Indian of the Year in 2016.
Sharma also emerged as India’s Hottest Business Leader under 40, as recognized by The Economic Times in 2015.
Vijay Shekhar Sharma- An Inspiration
Vijay has been the face of the economically backward section of Indian society. Even though he came from a family that had financial issues, he was able to break the barriers and work for the betterment of society. Undoubtedly, Vijay is one of the biggest names in the Indian Startup circuit!
