One 97 restructures group, strengthens governance

One 97 Communications Ltd, the parent company of Paytm, has approved a strategic internal restructuring plan aimed at simplifying its complex group structure. Announced on October 15, 2025, the restructuring will bring several financial and technology subsidiaries under direct ownership, a move the company said would enhance transparency, strengthen governance, and improve operational agility.

Key Subsidiary Acquisitions : As part of the restructuring, Paytm will acquire approximately 51.22 percent equity in Paytm Financial Services Limited (PFSL) from founder Vijay Shekhar Sharma and his wholly owned entity VSS Investco Private Limited for up to ₹0.5 crore at fair value. Post-acquisition, PFSL will become a wholly owned subsidiary of One 97 Communications.

Through PFSL, several entities including Admirable Software, Mobiquest Mobile Technologies, Urja Money, and Fincollect Services will also transition into wholly owned subsidiaries via direct and indirect ownership. Admirable Software, a technology services company, reported ₹0.44 crore in total income for FY25. Mobiquest, focused on loyalty and technology services, reported ₹33.43 crore, while Urja Money earned ₹18.59 crore, and Fincollect, a collection services firm, reported ₹220.47 crore.

Further Simplification of Structure :

The group will further streamline operations by transferring the shareholdings of Admirable, Mobiquest, Urja, and Fincollect directly under One 97 Communications through intra-group transactions. This step is intended to simplify governance structures, reduce operational complexity, and improve decision-making efficiency.

Acquisition of Remaining Stakes in Insurance & Tech Firms :

Paytm will also acquire the remaining stakes in Paytm Emerging Tech Limited (formerly Paytm General Insurance), Paytm Insuretech, and Paytm Life Insurance from Vijay Shekhar Sharma and his 100 percent-owned entities. The total consideration for these acquisitions will be up to ₹3.52 crore, based on net asset value. These companies, primarily engaged in technology services and manpower services, will become wholly owned subsidiaries of One 97 Communications. Paytm Insurtech recorded ₹0.49 crore in revenue in FY25.

Expansion in E-Commerce : Additionally, Paytm plans to increase its stake in Little Internet Private Limited, an e-commerce company, from 62.53 percent to about 78 percent. This will be achieved through the conversion of optionally convertible debentures and inter-corporate deposits worth around ₹15 crore at face value.

Regulatory Compliance & Strategic Impact :

The company emphasized that all related-party transactions are being executed at fair market value, in compliance with SEBI’s Listing Obligations and Disclosure Requirements, and the SEBI Master Circular. One 97 Communications stated that the restructuring will not alter ultimate ownership but is designed to improve operational efficiency, governance, and strategic agility.

Implications :

This move marks a significant consolidation for Paytm, aligning its subsidiaries under direct control to foster streamlined operations and reduce complexity in the rapidly evolving fintech and technology ecosystem. Analysts suggest that such consolidation can improve decision-making speed, regulatory compliance, and long-term growth potential, while keeping the group poised for innovation and market expansion.