Paytm parent to pump Rs 455 Cr in subsidiaries; winds up real-money gaming operations

One 97 Communications Ltd, the parent of Paytm, will invest up to Rs 455 crore in two of its wholly-owned subsidiaries Paytm Money and Paytm Services.

The company's board has cleared subscriptions to rights issues of up to Rs 300 crore in Paytm Money and Rs 155 crore in Paytm Services. It has also approved transfer of equity shares as part of the group’s internal restructuring plan.

These developments come on the heels of the company's gaming affiliate First Games shutting real-money operations following the government’s new online gaming law.

Paytm Money offers investment and wealth management services, while Paytm Services is in the business of manpower supply and related services.

The company said the cash infusions are expected within 30 days and will not change its ownership in either of its subsidiaries. Paytm Money reported a turnover of Rs 172.93 crore in FY25, while Paytm Services’ FY25 turnover was 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 was leaving Paytm after five years. Sridhar led Paytm Money from July 2020 to June 2024 and has overseen Paytm Services since June 2024. He is evaluating his next steps, which could include starting his own venture.

First Games—considered a joint venture for consolidation—has discontinued real-money gaming after the government published the Promotion and Regulation of Online Gaming Act, 2025, on August 22. First Games will continue to offer other online social games permitted under the law and recorded the closure effective August 25, according to the stock exchange filing.

For the quarter ended June 30, One 97 Communications Ltd's share of earnings from First Games was less than 1% of the company's consolidated profit or loss. Its exposure is limited to a shareholder loan of about Rs 200 crore, including interest.

Several players in the real money gaming sector are pivoting towards free-to-play formats, recalibrating their marketing spends, and reworking compliance and product roadmaps to align with the government's new guardrails.

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Internal restructuring

Meanwhile, Paytm is simplifying its group structure. It plans to transfer 55% of the paid-up share capital of First Games Technology Pvt Ltd from Paytm Cloud Technologies to Paytm Services—both wholly owned units—for up to Rs 140 crore. First Games will remain a step-down subsidiary after the intra-group transfer.

Paytm will also acquire up to 100% of Foster Payment Networks Pvt Ltd from Paytm Financial Services and another shareholder for an aggregate amount up to Rs 61 crore, making Foster a wholly owned subsidiary.

The company said the internal restructuring is aimed at streamlining the corporate structure, improving business efficiency, and ensuring better alignment of operations across the group.