Paytm parent restructures to bring financial, tech entities under direct ownership

Paytm‘s parent, One 97 Communications Ltd, has approved a comprehensive internal restructuring plan to bring several of its financial and technology subsidiaries under direct ownership. The Board of Directors approved the transactions on October 15, 2025, describing the move as a step to simplify the group structure, enhance transparency, and improve operational efficiency. The company said all transactions were independently valued and executed on an arm’s length basis as per regulatory provisions.

According to company information, as part of the plan, Paytm will acquire around 51.22% equity in Paytm Financial Services Ltd from founder Vijay Shekhar Sharma and his wholly owned entity VSS Investco Pvt Ltd. for up to Rs 0.5 crore at fair value. Following this, Paytm Financial Services will become a wholly owned subsidiary of the company. Entities where PFSL holds investments, Admirable Software, Mobiquest Mobile Technologies, Urja Money, and Fincollect Services will also become wholly owned subsidiaries through direct and indirect ownership.

The company will then simplify this structure further by transferring the shareholdings of Admirable, Mobiquest, Urja, and Fincollect directly under One 97 Communications through intra-group transactions. Admirable Software, engaged in technology services, reported total income of Rs 0.44 crore in FY25, while Mobiquest, a loyalty and technology services firm, reported Rs 33.43 crore. Urja Money earned Rs 18.59 crore in FY25 and Fincollect, a collection services company, recorded Rs 220.47 crore.

According to company information, Paytm will also acquire remaining stakes in Paytm Emerging Tech Ltd (formerly Paytm General Insurance), Paytm Insuretech, and Paytm Life Insurance from Sharma and his 100% owned entities for a combined consideration of up to Rs 3.52 crore, based on net asset value. Each of these entities will become wholly owned subsidiaries. Paytm Emerging Tech is engaged in technology services, while Paytm Insuretech provides manpower services and reported Rs 0.49 crore in FY25. Paytm Life Insurance is also engaged in technology services.

Additionally, Paytm will increase its stake in Little Internet Pvt Ltd, which operates in the e-commerce segment from 62.53% to about 78% through the conversion of optionally convertible debentures and inter-corporate deposits worth approximately Rs 15 crore at face value.

The company stated that these related-party transactions have been undertaken at fair market value in compliance with SEBI’s Listing Obligations and Disclosure Requirements and the SEBI Master Circular. It added that the restructuring will simplify ownership, strengthen governance, and bring greater agility to operations without any change in ultimate ownership.