Paytm to Invest ₹455 Crore, Exits Real-Money Gaming

Shares of One97 Communications Ltd (Paytm) closed 0.9% higher at ₹1,276.20 on the BSE, marking a strong run in the past month. The fintech giant’s stock has surged by over 19% in the last 30 days, reflecting investor optimism despite regulatory challenges and a strategic exit from its real-money gaming business.

The rally highlights growing market confidence in Paytm’s restructuring and renewed focus on its core businesses, even as it consolidates non-core units.

Board Approves ₹455 Crore Investment in Subsidiaries

Paytm announced that its board has approved rights issue investments worth ₹455 crore to strengthen its key operations:

• ₹300 crore investment in Paytm Money – its wealth management and stock broking arm.

• ₹155 crore investment in Paytm Services – a key subsidiary that supports its financial services ecosystem.

These investments are part of Paytm’s strategy to double down on its high-growth segments like payments, financial services, and wealth management.

Restructuring for a Simplified Group Structure

Alongside capital infusion, Paytm also revealed plans to consolidate its subsidiaries for improved efficiency. The company will merge Foster Payment and First Games into its main structure, thereby streamlining operations and reducing complexities in management.

Analysts suggest this move could enhance transparency, cut costs, and sharpen focus on businesses with stronger revenue potential.

Paytm Exits Real-Money Gaming Business

A major update from Paytm was its announcement to exit the real-money gaming business operated through First Games, following the enactment of the Promotion and Regulation of Online Gaming Act, 2025.

The new law has introduced strict guidelines around real-money games such as rummy, poker, and fantasy sports, leading to Paytm’s decision to withdraw from the segment.

In its official statement, Paytm clarified:

“Pursuant to the publication by the Government of India in the Gazette with respect to The Promotion and Regulation of Online Gaming Act, 2025, we have been informed by First Games that it will continue to offer other online social games, as permissible under the said Act, and has discontinued its real money gaming business.”

Focus Shifts to Social Gaming

While Paytm has shut down its real-money gaming operations, First Games will continue to offer social and casual games that are allowed under the new law. These games, which do not involve monetary stakes, still have a large user base and will keep Paytm’s presence alive in the gaming space, albeit at a smaller scale.

The company added that it will maintain only a minor exposure to gaming through social games, ensuring compliance with government regulations while diversifying its engagement offerings.

Investor Sentiment Remains Positive

Despite the exit from real-money gaming, Paytm shares rose 0.9% in the latest trading session, reflecting that investors are largely supportive of the company’s strategic redirection.

The market rally over the last month indicates that Paytm’s move to prioritize financial services, wealth management, and payments over risky gaming bets is being well-received.

Experts believe that focusing on sustainable revenue streams will strengthen Paytm’s long-term growth outlook, especially as the regulatory environment around online gaming remains uncertain.

Outlook: Strengthening Core, Shedding Risk

Paytm’s latest announcements underline a clear shift towards stability and compliance. With fresh investments in Paytm Money and Paytm Services, coupled with a simplified group structure, the company is positioning itself for sustainable growth in the financial services ecosystem.

By exiting the high-risk real-money gaming segment and retaining only casual gaming, Paytm is signaling its intention to focus on core strengths while reducing regulatory risks.

As India’s fintech sector continues to evolve, Paytm’s ability to pivot and restructure effectively could prove crucial in consolidating its market leadership.