Mumbai: One 97 Communications Ltd, the parent company of Paytm, on Monday announced an additional investment of up to ₹500 crore in its wholly-owned subsidiary, Paytm Cloud Technologies Ltd (PCTL). The investment will be made in one or more tranches over the next twelve months.
Subsidiary Investments
The board of PCTL has also approved an additional investment of up to ₹500 crore in its wholly-owned subsidiary, Paytm Singapore Pte. Ltd. This investment will also be made in one or more tranches over the next twelve months.
Purpose of Investment
These investments are intended to support the future requirements of working capital, investments, and business expansion for both PCTL and Paytm Singapore.
MDR Implementation Impact
One 97 Communications expects an indicative uplift of approximately 2.5 basis points (bps) in its overall Payments Processing Margin (PPM) following the implementation of Merchant Discount Rate (MDR). This uplift is based on the proposed cap of 0.4% MDR on select payments (non-industry merchants) for transactions above ₹2,000.
NPCI Update
The company referenced the National Payments Corporation of India (NPCI) press release dated October 13, 2026, which stated that MDR will be implemented immediately after Diwali on a date to be notified. The potential upside from MDR will reflect in the Payments Processing Margin, which is currently above 4 bps.
DLG Approval
One 97 Communications has approved Default Loss Guarantee (DLG) on loans disbursed by its lending partners. This is in line with the company’s existing business model of facilitating loan distribution.
Key Managerial Personnel
The board has authorised Madhur Deora, President and Group Chief Financial Officer, for determining the materiality of an event or information. Sunil Kumar Bansal, Company Secretary and Compliance Officer, has been authorised for disseminating and disclosing material events or information to the stock exchanges.
Disclaimer: This story is based on company exchange filings and is for informational purposes only. Investors should evaluate risks before making decisions.
