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Paytm Clears Rs 455 Crore Infusion Into Paytm Money and Paytm Services, Streamlines Subsidiaries

The move reflects a pivot toward regulated fee income following India's new online gaming law.

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Overview

  • One97 Communications approved rights-issue subscriptions of Rs 300 crore for Paytm Money and Rs 155 crore for Paytm Services, subject to approvals and expected within 30 days.
  • Paytm said the cash infusions will not change its ownership in either subsidiary, with Paytm Money focused on investments and broking and Paytm Services providing manpower and related services.
  • First Games has ceased real‑money gaming after the Promotion and Regulation of Online Gaming Act, 2025, took effect, with the closure recorded on August 25 and social games continuing.
  • The company disclosed limited exposure to First Games, citing a shareholder loan of about Rs 200 crore and less than 1% contribution to consolidated profit or loss in the June quarter, with the JV’s investment value at nil as of Q1 FY26.
  • As part of internal restructuring, Paytm will transfer 55% of First Games’ equity from Paytm Cloud Technologies to Paytm Services for Rs 140 crore and acquire Foster Payment Networks in full for up to Rs 61 crore to make it a wholly owned unit.