One 97 Communications Limited , popularly known as Paytm, has announced the completion of additional investments totaling INR 455 crore in two of its wholly owned subsidiaries. This move is part of the company's internal restructuring efforts, aimed at strengthening its financial ecosystem.

Investment Details

Paytm has made the following investments through rights issues:

The company subscribed to equity shares of these subsidiaries, with the transaction completed on September 22.

Regulatory Disclosure

In a filing to the stock exchanges, Paytm's Company Secretary and Compliance Officer, Sunil Kumar Bansal, stated that this disclosure is in accordance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company had previously informed the exchanges about these planned investments in a letter dated August 25.

Strategic Implications

This substantial investment in its subsidiaries underscores Paytm's commitment to strengthening its diverse financial services offerings. Paytm Money Limited, which received the larger share of the investment at INR 300 crore, is known for its wealth management and investment platform. The additional funding is likely to support its growth and expansion plans in the competitive fintech space.

Paytm Services Private Limited, receiving INR 155 crore, is expected to utilize these funds to enhance its service capabilities, potentially improving the overall ecosystem of Paytm's various financial products and services.

Transparency and Compliance

The company has assured that this disclosure will be available on its investor relations website, demonstrating its commitment to transparency with investors and regulatory compliance. The move aligns with Paytm's ongoing efforts to optimize its corporate structure and potentially create more value for its shareholders.

As Paytm continues to evolve in the dynamic fintech landscape, this strategic internal restructuring and investment in key subsidiaries may play a crucial role in shaping its future growth trajectory and market position.

One 97 Communications (Paytm), India's leading financial services and mobile payments company, has unveiled a groundbreaking service called Paytm Postpaid, offering users a credit line on UPI in collaboration with Suryodaya Small Finance Bank. This innovative solution aims to provide consumers with greater flexibility in managing their everyday expenses.

Key Features of Paytm Postpaid

• Instant Short-Term Credit: Users can access a credit line for immediate payments across various platforms.
• Wide Acceptance: The service works with any merchant UPI QR code and online platforms.
• Interest-Free Period: Offers up to 30 days of interest-free credit.
• Flexible Repayment: Users can settle their payments the following month.
• Versatile Usage: Applicable for scanning UPI QR codes, online shopping, recharges, and bill payments on the Paytm app.

How It Works

Paytm Postpaid leverages the company's robust technology for secure, real-time payments. It allows consumers to manage liquidity without disrupting daily expenses while providing merchants with universal acceptance and instant settlement through the familiar UPI payment flow.

Rollout Strategy

The service is currently being introduced to a select group of users based on their spending behavior. Paytm plans to expand the service to more consumers in the coming months.

Executive Insights

Avijit Jain, Chief Operating Officer - Lending at Paytm, emphasized the service's aim to simplify everyday expenses: "We are delighted to bring Paytm Postpaid, Credit Line on UPI, which makes it possible to spend instantly and comfortably repay the next month. Whether it's paying at a local store, managing household bills, or shopping online, this solution is designed to make life simpler."

Vishal Singh, Chief Information Officer and Head Digital Banking at Suryodaya Small Finance Bank, highlighted the partnership's goal: "By enabling Paytm Postpaid on UPI, we are empowering consumers with greater flexibility to manage their everyday spends, while ensuring the reliability of a regulated banking partner."

How to Get Started

To use Paytm Postpaid, users can follow these steps:

1. Open the Paytm app and tap the Paytm Postpaid icon on the Home page.
2. Create a Credit Line on UPI account by providing basic details and completing KYC.
3. Link the account with UPI.
4. Choose Suryodaya Small Finance Bank and authenticate using Aadhaar.
5. Set up a UPI PIN to start making payments through the linked credit facility.

This new offering from Paytm aligns with the company's mission to serve half a billion Indians and drive financial inclusion through technology. By combining the convenience of UPI with short-term credit, Paytm Postpaid aims to make everyday transactions more accessible and manageable for a wide range of consumers.