Paytm has hived off its payment gateway business into a separate entity, Paytm Payments Gateway Service Pvt Ltd, and has infused ₹100 crore worth of equity capital into the new entity, Entrackr reported. Paytm Payments Gateway mainly caters to corporate or institutional clients and provides online gateway services, unlike Paytm’s other arms which are consumer facing.
A senior official at Paytm confirmed the development to MediaNama but declined to comment. MediaNama could not independently verify the development through public documents from the Ministry of Corporate Affairs as access to the website was not available at the time of publication.
So far, Paytm was running the payments gateway business under its parent company, One97 Communications Ltd. By hiving off the business, Paytm can grow its merchant base for online gateway services separately taking on several new and legacy fintech players and banks that are in the space.
The report also says that Paytm will also infuse $14 million in Paytm Money going forward. In November last year, it infused ₹60 crore into the mutual fund and stocks platform. Further, the company will also invest $12 million into Paytm Insurance Broking in one or more tranches over the coming months, the report said.
Paytm is now in financial services, gaming, e-commerce
Paytm, which was valued at $16 billion during a 2019 funding round, has been making inroads across the financial services industry in India on top of its digital payments wallet. At present, Paytm’s universe of services now include payment gateway services, e-wallets, credit products for individuals and micro and small merchants, gold investments, a mutual funds platform, derivatives and stock trading among other products.
Paytm also has a payments bank license, gaming platform Paytm First Games, and e-commerce platform Paytm Mall. In October 2020, it also launched what it called a “mini app store” within its app in order to compete with Google’s Android Play Store. The company says it has over 450 million Paytm wallet users and processes over 700 million monthly merchant transactions.
By targeting young and first-time investors Paytm Money, the investment platform, has grown manifold in the last few years with over 6.6 million investors and clocks over ₹ 20 crore worth of investments on a daily basis. In FY20, the payments bank reported a net-profit of ₹29.8 crore up from ₹19.2 crore in the previous year. It made ₹2,100 crore in revenues in the previous fiscal year . It claims to have 58 million current and savings account deposits accruing to over ₹1,000 crore. While the payments bank has issues 5.8 crore digital debit cards, it recently partnered with SBI Cards and Payment Services Ltd to provide credit card offerings to the banks’ customers.