Digital payment company Paytm
Paytm's parent company One 97 Communications Limited has announced a major strategic step, which is going to change the way the company operates. The company has approved the transfer of its offline merchant payments business to a wholly owned subsidiary, Paytm Payments Services Limited (PPSL) to comply with the stringent guidelines of the Reserve Bank of India (RBI). This decision has been taken to make the company's payment business more streamlined and in accordance with regulatory rules.
Giving this information in the stock exchange filing, the company said that the main objective of this transfer is to bring the group's online and offline merchant payments business under a single company, i.e. PPSL. It is noteworthy that PPSL has already received in-principle approval from RBI to work as a payment aggregator (online).
This entire reshuffle is being done to comply with the master directions related to the regulation of payment aggregators issued by RBI on September 15, 2025. Paytm The company's offline merchant payments business includes all those merchants who accept payments through the company's QR codes, soundboxes and EDC machines. The transfer of this business will be on the basis of a “slump sale”, which means that the entire business is being sold outright. However, this is still pending final approval from the shareholders and the board of PPSL. The company has clarified that since this transfer is being done from a holding company to its 100% owned subsidiary, there will be no impact on the consolidated financial results of the company.
If we look at the figures, in the financial year 2024-25, Paytm's offline merchant payments business had recorded a revenue of about Rs 2,580 crore, which was about 47 percent of the company's total revenue on a standalone basis. As of March 31, 2025, the net worth of the business being transferred was around Rs 960 crore, which is 7.45 percent of the total standalone net worth of the company. The company expects that after receiving all the necessary approvals, this transfer process will be completed on or before December 31, 2025. This entire deal will be done under a business transfer agreement and is not part of any scheme of arrangement.
In addition to consolidating the payments business, One 97 Communications has also approved a comprehensive internal restructuring plan to simplify its corporate structure. The objective of this plan is to bring many financial and technology related subsidiaries of the company directly under its ownership. The company's board has described this move as an important step towards simplifying the group's structure and improving transparency and efficiency.
Under the plan, the company will acquire approximately 51.22% equity in Paytm Financial Services Limited from founder Vijay Shekhar Sharma and his company VSS Investco Pvt. Ltd. Subsequently, Paytm Financial Services will become a wholly owned subsidiary of One97.
Apart from this, further simplifying its structure, the company will also directly bring the shareholding of companies like Admirable Software, Mobiquest Mobile Technologies, Urja Money and Fincollect Services under its control. Also, the remaining stake in Paytm Emerging Tech Limited, Paytm Insurtech and Paytm Life Insurance will also be purchased from Vijay Shekhar Sharma, due to which all these companies will also become wholly owned subsidiaries. The company has said that all these transactions have been done at fair market value and are expected to be completed by January 31, 2026.
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