Paytm parent takes direct ownership of financial, tech units

One 97 Communications, the parent company of Paytm, has approved a restructuring to bring several financial and technology subsidiaries under direct ownership.

The board approved on October 15, 2025 that Paytm will acquire around 51.2% equity in Paytm Financial Services Ltd from founder Vijay Shekhar Sharma and his wholly owned entity VSS Investco Pvt Ltd for up to 0.5 crore rupees (US$60,000) at fair value.

Following this, Paytm Financial Services and its investments—Admirable Software, Mobiquest Mobile Technologies, Urja Money, and Fincollect Services—will become wholly owned subsidiaries through direct and indirect ownership.

The company will transfer shares of these entities directly under One 97 Communications through intra-group transactions as part of the restructuring.

🔗 Source: The Economic Times

🧠 Food for thought

Implications, context, and why it matters.

Regulatory approvals could affect restructuring timelines, depending on subsidiary licensing status

The company plans to move units such as Paytm Emerging Tech Ltd and Paytm Insuretech plus Paytm Life Insurance into Paytm Financial Services Ltd, which provides technology or manpower services 1. If any unit is regulated then a change in control needs prior approval from the Reserve Bank of India (RBI) or the Insurance Regulatory and Development Authority of India (IRDAI), else only corporate approvals apply 1.
Paytm Payments Services got in-principle approval to run as an online payment aggregator from the RBI, a license that lets a firm accept and process payments for merchants, which signals ongoing licensing scrutiny in the sector 2.
Needed approvals for ownership changes could push out integration timelines, which may delay some gains from the restructuring.
Paying Rs 0.5 crore for 51.22% of Paytm Financial Services hints at low book value (the accounting value of net assets), which raises questions on active licenses or revenue lines that could need regulatory sign-off 1.

NBFCs and banks can fill lending partner gaps as Paytm simplifies governance

The largest lending partner moved from Default Loss Guarantee (DLG) loans to non-DLG loans (DLG is a framework where a fintech agrees to absorb part of credit losses), which leaves room for other lenders since that partner now makes up 30 to 40 percent of the lending business 3.
In Q1 FY26 (first quarter of fiscal 2026), 560,000 users took loans and services. Merchant lending drove growth, so Paytm may add partners to reduce reliance on its main lender 3.
Non-Banking Financial Companies (NBFCs) that focus on merchant lending can pitch better credit terms or faster turnaround than the current dominant partner, especially for the 13 million merchant subscriptions 3.
Banks that want digital distribution can pitch co-branded products (financial offerings marketed jointly with Paytm) to Paytm’s 44 million merchant base, using the simplified ownership structure to set clearer partnership terms 4.