Paytm to infuse up to Rs 2,250 crore into payments arm PPSL via rights issue

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One97 Communications Ltd (OCL), the parent company of Paytm, said its board has approved an investment of up to Rs 2,250 crore in its wholly owned subsidiary, Paytm Payments Services Ltd (PPSL), through a rights issue.

The decision was cleared at the company’s board meeting held on November 4, Paytm said in a stock exchange filing. The funds will be used to strengthen PPSL’s net worth, meet its working capital needs, and facilitate the transfer of Paytm’s offline merchant payments business in line with the Reserve Bank of India’s (RBI) guidelines issued in September 2025.

According to the company’s filing with the stock exchanges, the transaction will be completed on or before December 31, 2025, subject to applicable approvals.

PPSL, incorporated in October 2020, provides payment aggregator and payment gateway services and is among Paytm’s core subsidiaries in the financial services ecosystem. It reported revenue of Rs 1,171.6 crore in FY25, compared with Rs 2,294 crore in FY24 and Rs 2,060.9 crore in FY23.

The transfer of Paytm’s offline merchant payments business—covering QR codes, soundboxes, and card machines—is being carried out to comply with the RBI’s payment aggregator framework, which requires these activities to be operated under a separately licensed entity.

Earlier this year, Paytm re-submitted PPSL’s Payment Aggregator (PA) licence application to the RBI, and in August 2025, it received in-principle authorisation from the central bank. The RBI also lifted restrictions on merchant onboarding that had been in place since 2022. PPSL subsequently completed its System and Cyber Security Audit (SAR) in September and is now awaiting the final Certificate of Authorisation (CoA) from the RBI.

Paytm said the fresh capital infusion will ensure PPSL remains “well-capitalised and compliant with all regulatory expectations” as it scales its merchant payments infrastructure and digital payment processing capabilities.

In the same meeting, Paytm’s board also appointed Manisha Raj, Founder and CEO of

AI-native platform SiftHub, as an Independent Director for a five-year term, effective November 4, 2025.

Her appointment will be subject to shareholder approval at the company’s next general meeting. Before founding SiftHub, Manisha was the co-founder and Chief Technology Officer of LogiNext, a logistics automation and optimisation SaaS platform.