Paytm Eyes Global Growth: Sets Up Indonesia & Luxembourg Units, Cuts UAE Subsidiary Stake to 51 per cent

Paytm’s parent company, One97 Communications Ltd, on Monday announced the creation of two overseas subsidiaries and a strategic transaction that will reduce its ownership in its UAE payments arm to 51%, stock exchange filing showed.

The board approved the incorporation of wholly owned step-down subsidiaries in Indonesia and Luxembourg. It also cleared the proposed allotment of 76,862 shares in Paytm Arab Payments LLC (PAPL), representing 49% of PAPL’s post-issue paid-up capital, to Abbar Global Opportunities Holdings Limited (AGOHL), an Abu Dhabi Global Market entity linked to billionaire developer Mohamed Ali Rashed Alabbar.

Following completion of the transaction, PAPL will continue as a step-down subsidiary but will no longer be wholly owned by One97 Communications.

Deal Specifics

The shares to be issued have a face value of AED 100 each, with the allotment subject to regulatory approvals and customary closing conditions. Paytm said the transaction is in line with its earlier disclosures on exploring select international markets to expand the reach of its merchant payments and financial-services technology.

AGOHL is a special-purpose vehicle of Alabbar, the founder of Emaar Properties and a co-founder of regional ecommerce firm Noon. Alabbar’s investment arms have been active across real estate, retail and financial services in the Gulf region.

Paytm’s decision to dilute a near-half stake in its UAE arm while setting up new entities in Indonesia and Luxembourg comes as the company steps up efforts to commercialise its Payments and Financial Services technology stack overseas.

The board’s action also follows recent domestic developments that have strengthened Paytm’s payments business. Earlier this month, Paytm Payments Services Ltd (PPSL) secured three key payment-aggregator licences from the Reserve Bank of India, allowing it to operate online, offline and cross-border payment flows. Paytm also infused ₹2,250 crore into PPSL through a rights issue on December 12 to bolster the unit’s net worth and working capital ahead of its growth plans.

Paytm Financials

Payments has become a central pillar of Paytm’s revenue mix: in Q2 FY26 the company said payment-processing margin revenue rose 27% year-on-year to ₹594 crore, and merchant subscription volumes climbed to 13.7 million.

The parent reported a net profit of ₹21 crore in Q2 FY26, down from ₹930 crore a year earlier, a quarter affected by a one-time impairment related to a shuttered real-money gaming venture. Founder-CEO Vijay Shekhar Sharma has signalled a continued focus on payments as the path to sustainable profitability.