One 97 Communications Ltd, the parent company of Paytm, has announced a major investment plan to strengthen its two subsidiaries, Paytm Money and Paytm Services. The company’s board has approved a rights issue of up to ₹300 crore for Paytm Money and ₹155 crore for Paytm Services.
This means the parent company will invest a total of ₹455 crore into these businesses within the next 30 days. Despite this cash infusion, the ownership stakes of One 97 Communications in both subsidiaries will remain unchanged.
Paytm Money focuses on investment and wealth management services, while Paytm Services operates in manpower supply and related areas. In the financial year 2025, Paytm Money reported a turnover of ₹172.93 crore, and Paytm Services had a turnover of ₹252.41 crore.
These investments come shortly after the company’s gaming affiliate, First Games, stopped offering real-money gaming. This decision follows the government’s new Promotion and Regulation of Online Gaming Act, 2025, which came into effect on August 22. First Games will now only offer social games that comply with the law. The company officially closed its real-money gaming operations on August 25.
One 97 Communications holds a shareholder loan of about ₹200 crore in First Games, but its financial exposure remains limited. For the quarter ending June 30, First Games’ earnings contributed less than 1% to the parent company’s consolidated profit or loss.
Varun Sridhar, the CEO of Paytm Services and former head of Paytm Money, recently announced his departure after 5 years with the company. Sridhar led Paytm Money from 2020 to 2024 and then oversaw Paytm Services before deciding to explore new opportunities, possibly starting his own venture.
As part of the company’s internal restructuring, Paytm is simplifying its group structure to improve efficiency. It plans to transfer 55% ownership of First Games Technology from Paytm Cloud Technologies to Paytm Services. Additionally, Paytm will fully acquire Foster Payment Networks, making it a wholly owned subsidiary. These moves aim to streamline operations and better align the group’s businesses.
Read more: Paytm Introduces RuPay Credit Card–UPI Linking for Seamless Payments.
One 97 Communications’ ₹455 crore investment in Paytm Money and Paytm Services reflects a strategic focus on strengthening core businesses while adapting to regulatory changes in gaming. The company’s internal restructuring efforts are designed to boost efficiency and prepare for future growth.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.
Published on: Aug 26, 2025, 10:07 AM IST
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