Paytm Invests ₹2,250 Crore in PPSL via Rights Issue, Strengthens Payments Business

Paytm’s parent company One97 Communications has completed an additional investment of ₹2,250 crore in its wholly owned subsidiary Paytm Payments Services Limited (PPSL) through a rights issue. The move comes after PPSL received final approval from the Reserve Bank of India (RBI) to operate as a payment aggregator, marking a key milestone for Paytm’s payments ecosystem.

Paytm Invests ₹2,250 Crore in PPSL via Rights Issue

Paytm’s parent company, One97 Communications, has completed an additional investment of ₹2,250 crore in Paytm Payments Services Limited (PPSL). This investment was made by subscribing to equity shares through a rights issue. Paytm informed the stock exchanges about this development.

PPSL is now operating as a payment aggregator after receiving final approval from the Reserve Bank of India (RBI) in November 2025. Earlier, the RBI had granted in-principle approval on August 12, 2025. PPSL is a wholly owned subsidiary of One97 Communications.

After receiving the payment aggregator licence, Paytm Payments Services will be able to onboard merchants and facilitate online transactions for them. The company had first applied for the payment aggregator licence in March 2020.

However, the RBI rejected the application in November 2022 and directed the company to reapply after complying with foreign direct investment (FDI) norms. At that time, PPSL was also barred from onboarding new merchants. This restriction was lifted in August 2025. Meanwhile, China’s Alibaba Group has fully exited its stake in Paytm.

Offline Merchant Payments Business Transferred to PPSL

One97 Communications Limited has transferred its offline merchant payments business to PPSL in exchange for a lump-sum cash consideration. Since this transaction is between the holding company and its 100 percent-owned subsidiary, there is no change in ownership or control.

Paytm currently has around 14 million offline merchants using its various payment subscription devices, including Soundbox, point-of-sale machines, and online payment gateways. Along with the business transfer, One97 Communications has also moved two senior management executives to PPSL. These include Ripunjay Gaur, Chief Operating Officer (Offline Payments), and Dipendra Singh Rathore, Chief Technology Officer (Payments).

Paytm Reports ₹211 Crore Profit in September Quarter

In the July–September 2025 quarter, One97 Communications reported a 24 percent year-on-year increase in operating revenue to ₹2,061 crore. The company posted a net profit of ₹211 crore, marking its second consecutive profitable quarter. EBITDA rose to ₹142 crore, with an EBITDA margin of 7 percent. Revenue from Paytm’s payment services business grew 25 percent year-on-year to ₹1,223 crore.

Shares of One97 Communications are currently trading at ₹1,305.85 on the BSE, with the company’s market capitalisation exceeding ₹83,500 crore. The stock has gained around 46 percent over the past six months. Brokerage firm ICICI Securities has raised its target price for the stock from ₹1,240 to ₹1,450 per share, citing expected growth in payments and loan distribution, margin improvement through product upgrades, and a better UPI mix. The brokerage estimates that Paytm could generate net revenue of ₹12,523 crore by FY28.