One97 Communications: The Transition to a Majority Indian-Owned Fintech Leader
One97 Communications, which operates the Paytm platform, has now officially become a majority Indian-owned entity, as indicated in its recent shareholding report. This shift occurs against a backdrop of heightened regulatory scrutiny concerning ownership structures within the fintech sector.
A detailed examination of the company’s shareholding pattern reveals a significant transformation over the last two years. Foreign institutional investors (FIIs) held a commanding stake of 72.11% in June 2023, which has now decreased to 49.4% as of March 2026.
Domestic Institutional Investors Increase Stake
In contrast, domestic institutional investors (DIIs) have dramatically raised their investment in the firm, with their share climbing from 3.54% in June 2023 to 23.08% by March 2026. Public shareholding has also seen a modest rise from 24.35% in June 2023 to 27.51% in March 2026.
The Impact of Changing Ownership
The fall in foreign ownership alongside a significant surge in domestic institutional stakes has been pivotal in establishing Paytm as a majority Indian-owned company. With increasing contributions from DIIs and the general public, the overall Indian shareholding has now reached 50.59%.
Growing Domestic Capital Investment
The statistics suggest a continual growth in domestic capital’s involvement in the company, even as foreign investors have been reducing their holdings across several quarters. This transition is particularly timely, given that companies with foreign investments, especially those connected to entities like Ant Group, are facing enhanced regulatory scrutiny in India.
Regulatory Benefits and Performance Enhancement
The evolution into a majority Indian-owned firm could provide Paytm with a pathway to mitigate regulatory challenges and bolster its operational agility, particularly concerning its financial services operations.
Financial Performance Highlights
On the financial performance side, One97 Communications has demonstrated notable improvement. In Q3 FY26, the firm reported a year-on-year revenue growth of 20%, reaching Rs 2,194 crore compared to Rs 1,828 crore during the same quarter the previous year. Additionally, it announced a net profit of Rs 225 crore for the period.
Market Reaction to Ownership Change
Following this pivotal development, shares of Paytm experienced a 3.23% rise, reaching Rs 1,142.3, resulting in a total market capitalisation of Rs 73,158 crore, equivalent to approximately $7.95 billion.
