One97 Communications to invest Rs 300 crore in broking entity Paytm Money

Paytm to invest Rs 300 crore in broking business

One 97 Communications Ltd (OCL), the parent company of Paytm, on August 25 said that it will invest up to Rs 455 crore in two of its wholly owned subsidiaries, Paytm Money and Paytm Services.

The former houses the payment firm’s broking business, which has been losing active customers to rivals over the last 18 months amid intensifying competition and the entry of several new players.

OCL will subscribe to a rights issue of equity shares for up to Rs 300 crore in Paytm Money

and up to Rs 155 crore in Paytm Services Private Ltd. (PSPL). The investment will not change OCL's 100% shareholding in either subsidiary.

The company expects to complete the cash transactions within 30 days. PML, which provides investment and wealth management services, had a turnover of Rs 173 crore in the fiscal year 2024-25, a decline of around 11 percent from Rs 194 crore it reported in the preceding fiscal.

PSPL, which focuses on manpower supply, had a turnover of Rs 252 crore for the same period.

Meanwhile, First Games, a joint venture of Paytm, has discontinued its real-money gaming business after the new law banning real money games in the country, the company said.

Paytm said that First Games will focus on other online social games permissible under the new law. According to the exchange filings, First Games' business contributes less than 1 percent of the OCL's consolidated profit or loss, and the carrying value of the investment in First Games is nil as of June 30, 2025.

However, Paytm has an exposure of about Rs 200 crore to First Games, though it is not clear how the ban  on real money games (RMG) will affect First Games' ability to pay back the loan.

The Noida-based payments firm reported its first-ever operational net profit of Rs 123 crore during the June quarter, aided by strong growth in lending and a 19 percent drop in expenses. Revenue rose 28 percent year-on-year to Rs 1,918 crore, while EBITDA turned positive at Rs 72 crore.