One97 Communications Ltd (OCL), the parent of Paytm, has announced a fresh investment of up to ₹455 crore into two of its wholly owned subsidiaries-Paytm Money and Paytm Services as it sharpens focus on core financial services amid shifting regulatory dynamics.
OCL will inject ₹300 crore into Paytm Money, its broking and wealth management arm, and ₹155 crore into Paytm Services Pvt Ltd (PSPL), which manages manpower supply. The capital will be infused via a rights issue, maintaining OCL’s full ownership. Both transactions are expected to close within 30 days, according to Moneycontrol.
Paytm Money has struggled with increasing competition, reporting a turnover of ₹173 crore in FY25- an 11% decline from ₹194 crore in FY24. PSPL fared better, posting ₹252 crore in turnover during the same period.
Meanwhile, Paytm First Games, a joint venture, has shut down its real-money gaming (RMG) operations following a government ban. The platform will now pivot to social gaming. The RMG business contributed less than 1% to OCL’s results and carried no value as of June 30, 2025.
This strategic pivot follows a milestone quarter for the Noida-based fintech giant. In Q1 FY26, Paytm posted its first operational net profit of ₹123 crore, driven by lending growth and cost optimization. Revenue rose 28% YoY to ₹1,918 crore, while EBITDA turned positive at ₹72 crore.
The company also cut marketing expenses by ₹651 crore in FY25 and reduced its permanent workforce by 48%.
