Paytm simplifies group structure, brings key entities under direct ownership

New Delhi: 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, describing the move as a step towards simplifying the group structure and creating certain subsidiary ownership changes, the firm said.

The company said all transactions were independently valued and undertaken on an arm's length basis as per regulatory provisions.

The move is aimed at simplifying corporate structure, improving transparency and efficiency.

As part of the plan, the company will acquire around 51.22 per cent equity in Paytm Financial Services Limited from founder Vijay Shekhar Sharma and his wholly owned entity VSS Investco Private Limited 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 PSFL 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 further simplify this structure 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.

Paytm will also acquire the remaining stakes in Paytm Emerging Tech Limited (formerly Paytm General Insurance), Paytm Insuretech, and Paytm Life Insurance from Sharma and his 100 per cent-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, the company will increase its stake in Little Internet Private Limited from 62.53 per cent to about 78 per cent 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.

All acquisitions are expected to be completed by January 31, 2026.