Paytm sets up units in Indonesia, Luxembourg; sells 49% stake in UAE arm

One97 Communications Ltd, the parent company of fintech firm Paytm, is expanding its overseas footprint through new subsidiaries in Indonesia and Luxembourg, while also bringing in an investor for its United Arab Emirates (UAE) payments arm, according to a stock exchange filing.

Paytm Cloud Technologies Ltd (PCTL), a wholly owned subsidiary of One97 Communications, has approved the incorporation of two step-down wholly owned subsidiaries in Indonesia and Luxembourg. The proposed entities will focus on expanding the distribution of Paytm’s technology-led merchant payments and financial services stack through a mix of local licences, partnerships, investments, and organic expansion, the company said.

The fintech firm plans to invest up to Rs 25 crore in each of the two subsidiaries, in one or more tranches.


Separately, Paytm is diluting its stake in Paytm Arab Payments LLC, its UAE-based subsidiary, through a strategic investment by Abbar Global Opportunities Holdings, a special purpose vehicle (SPV) of UAE billionaire Mohamed Ali Rashed Alabbar, founder of Emaar Properties.

Under the transaction, Paytm Arab Payments will issue 76,862 equity shares to Abbar Global Opportunities, representing 49% of the post-issue paid-up share capital. The deal values the issuance at about Rs 19 crore.

Following the allotment, Paytm Arab Payments will cease to be a wholly owned subsidiary and will become a 51% owned subsidiary of PCTL, while continuing as a step-down subsidiary of One97 Communications.

The transaction is expected to be completed by February 28, 2026.

“This is in line with the company’s earlier disclosure that it is exploring select new markets for future growth and bringing its advanced technology across merchant payments and financial services to international markets,” the statement read.

This comes as Paytm reported a net profit of Rs 21 crore in the September quarter of the current fiscal, down 97% from Rs 930 crore in the same period last year. One of the factors for the sharp decline was a Rs 190 crore impairment on its investment in Paytm First Games, a joint venture with One97 Communications, following the government’s ban on real-money gaming (RMG) applications.

The Noida-headquartered company’s operating revenue rose 24% year-on-year (YoY) to Rs 2,061 crore, from Rs 1,659 crore in the previous year.