Paytm's parent company, One 97 Communications Ltd, plans to invest up to Rs 455 crore in two of its wholly owned subsidiaries, Paytm Money and Paytm Services.
The company's board approved subscriptions to rights issues worth up to Rs 300 crore in Paytm Money and Rs 155 crore in Paytm Services. It also approved the transfer of equity shares as part of the company's internal restructuring plan.
Key Highlights
- One97 Communications injects ₹300 Cr into Paytm Money, ₹155 Cr into Paytm Services via rights issue.
- Gaming affiliate First Games shutters real-money operations following 2025 online gaming law, pivots to social games.
These developments come after the company's gaming affiliate First Games closed its real-money operations in response to the government's new online gaming law.
Paytm Money specializes in investment and wealth management services, whereas Paytm Services provides manpower and other related services.
The cash infusions are expected to be completed within 30 days, and the company's ownership of either of its subsidiaries will remain unchanged. Paytm Money had a turnover of Rs 172.93 crore in FY25, while Paytm Services had a revenue of Rs 252.41 crore.
Varun Sridhar, CEO of Paytm Services and former head of Paytm Money, announced in a LinkedIn post two days ago that he would be leaving the company after five years. Sridhar led Paytm Money from July 2020 to June 2024, and he has overseen Paytm Services since June 2024. He is considering his next steps, which may include starting his own business.
First Games, which was considered a joint venture for consolidation, has stopped offering real-money gaming after the government issued the Promotion and Regulation of Online Gaming Act, 2025, on August 22. According to the stock exchange filing, First Games will continue to offer other online social games as permitted by law and will close on August 25.
Also Read: Paytm Payments Gets RBI Approval to Function as Online Payment Aggregator
For the quarter ended June 30, One 97 Communications Ltd's share of First Games earnings was less than 1% of the company's total profit or loss. Its exposure is limited to a shareholder loan of approximately Rs 200 crore plus interest.
Several real-money gaming companies are shifting to free-to-play formats, adjusting their marketing budgets, and reworking compliance and product roadmaps to align with the government's new guidelines.
