In a series of strategic decisions, the board of fintech Paytm has approved investments of Rs 300 crore in Paytm Money and Rs 155 crore in Paytm Services Pvt Ltd (PSPL) in order to strengthen core business lines and evolve with changing regulations.
Paytm Money: Placing Big Bets on Wealthtech
Paytm Money, Paytm’s wealth and investment management business, will be getting new equity infusion after offering 30 crore new shares. The company remains positive about the outlook despite a fall in turnover to Rs 172.9 crore in FY25, particularly as it has just received SEBI registration as a research analyst. This means new fee-based opportunities in wealthtech, a space the company’s top leadership believes promises growth over the long term.
Recently, Paytm Money saw a reshuffle in management with the appointment of Sandiip Bharadwaj (former HDFC Securities) as CEO, after Rakesh Singh’s lateral shift within the Paytm Group. The idea is to use fresh leadership and license to fuel product innovation and performance recovery.
Varun Sridhar, the previous CEO of PSPL and Paytm Money, marked his exit following a five-year tenure, and has plans to launch a new business in wealthtech.
Paytm Services: Hiring Manpower and Tech
In addition to wealthtech, where it put in Rs 155 crore, Paytm’s investment in PSPL (erstwhile Balance Technology) highlights attention towards manpower supply and ancillary services. PSPL’s revenue jumped 64% to Rs 252.4 crore in FY25. This is more crucial because where it is scaling up logistics, service groups, and operational strength to serve merchants and financial services customers well, Paytm needs the personnel.
Check out: Paytm Gets RBI In-Principle Approval to Operate as Online Payment Aggregator
Gaming Restructuring: Closing Real Money Gaming Ops
In keeping with the government’s ban on real money gaming, Paytm also entails shifting a 55% stake in joint venture First Games with China’s AGTech Holdings from Paytm Cloud Technologies to PSPL for Rs 140 crore. The firm clearly declared that it has modest financial exposure because of a shareholder loan of approximately Rs 200 crore. All the top Indian RMG sites—Dream11, MPL, Gameskraft, WinZo, and so on—have already quit the business after the new law.
Chinese Stake and Regulatory Wins
Paytm’s association with Chinese investors has come a long way. In August, Ant Group sold the last 5.8% remaining stake in Paytm for $454 million in block deals, completely exiting after previous dumps of stakes in 2023 and 2024. This comes after stricter Indian regulation on foreign investment sources.
Independently, Paytm achieved a regulatory victory as India’s central bank cleared its online payment aggregator license, removing merchant onboarding restrictions since 2022. This, combined with solid partnerships with Axis, HDFC, SBI, and Yes Bank, further calms merchant services and payment processing.
Financials: A Profit Turnaround and Future Prospects
Following decades of turbulence, Paytm posted net profit of Rs 123 crore in Q1 FY26, its first profitable quarter as a listed company. Revenue from operations increased 28% YoY to Rs 1,918 crore led by merchant subscriptions, growth in financial services, and cost discipline.
As the firm moves out of non-core areas and invests in scalable tech and service segments, it shows strength and agility to keep pace with an ever-shifting regulatory environment—a mark of maturity for both Paytm and the larger Indian fintech ecosystem.
Check out: Paytm Founder Slams WhatsApp AI For Reading Private Chats; WhatsApp Calls This False
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