One 97 Communications, the parent company of digital payments platform Paytm, has announced an investment of ₹455 crore into its two wholly-owned subsidiaries—Paytm Money and Paytm Services. The move aims to strengthen its broking business and enhance manpower solutions.
Breakdown of Investment
- ₹300 crore will be allocated to Paytm Money, the company’s stock broking and investment platform.
- ₹155 crore will go into Paytm Services, which handles manpower supply and related operations.
The company clarified that these investments will not alter its 100% shareholding in either subsidiary and will be completed within 30 days.
Performance Snapshot
For FY25, the subsidiaries reported:
- Paytm Money: Turnover of ₹173 crore.
- Paytm Services: Turnover of ₹252 crore.
The infusion is expected to boost operational efficiency and expand service offerings in both businesses.
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Why It Matters
- Paytm Money plays a critical role in the company’s financial services ecosystem, offering stock trading, mutual funds, and investment products.
- Paytm Services ensures robust manpower and operational support, which is essential for scaling the company’s expanding businesses.
What’s Next?
Industry experts view this investment as a strategic move by One 97 Communications to consolidate its financial services and improve backend operations. The company is also likely to focus on profitability and regulatory compliance amid intense competition in the fintech sector.