Investments by One 97 Communications Limited in Paytm Subsidiaries

One 97 Communications Limited, which is the parent company of Paytm, has approved several strategic initiatives in its board meeting held on August 25. The board has agreed to invest up to Rs 300 crore in Paytm Money and Rs 155 crore in Paytm Services through rights issues. Both entities are wholly owned subsidiaries, and this capital injection will not affect the existing shareholding, as informed through a stock exchange announcement.

Acquisition of Foster Payment Networks

The company has also green-lit the complete acquisition of Foster Payment Networks for an amount up to Rs 61 crore, facilitating its transition into a fully owned subsidiary. Furthermore, the Noida-based firm proposed an equity transfer in First Games Technology from Paytm Cloud Technologies to Paytm Services, amounting to up to Rs 140 crore.

Changes in First Games’ Business Model

In parallel, Paytm’s gaming division, First Games, has opted to halt its real money gaming operations following the government’s announcement of the Promotion and Regulation of Online Gaming Act 2025. The company stated that First Games adds no value to consolidated revenues and has a nil book value.

Impact of the Online Gaming Act

The newly enacted Online Gaming Act prohibits all types of real money games in India. Several platforms, including Dream11, MPL, Zupee, Gameskraft, My11Circle, Probo, WinZo, and others, have already ceased their real money gaming divisions.