Fintech firm One97 Communications, which operates the Paytm brand, has become a majority Indian-owned company following a steady rise in domestic shareholding, according to its latest disclosures.
The shift reflects a broader change in the company’s ownership structure over the past two years, as foreign investors trimmed their exposure while domestic institutions expanded theirs.
Foreign institutional investors, which held a dominant 72.11% stake in June 2023, reduced their holding to 49.4% by March 2026.
Over the same period, domestic institutional investors increased their stake sharply from 3.54% to 23.08%. Mutual funds were the main drivers, with their holdings rising to 16.6% from 14.3% in the previous quarter. The number of mutual funds invested in the company increased to 41 from 36, with firms such as Motilal Oswal Mutual Fund, Mirae Asset and Bandhan Mutual Fund expanding their positions.
Insurance companies also added to their exposure, taking their combined stake to 5.1%. Among those increasing holdings were Tata AIA Life Insurance and SBI Life Insurance.
Public shareholding also rose modestly, from 24.35% in June 2023 to 27.52% in March 2026; however, public shareholding is not identical to Indian ownership, since it can include non-resident and foreign holders.
The trend has been consistent across multiple quarters, with domestic capital steadily increasing its exposure even as foreign investors scaled back.
The development comes amid heightened regulatory scrutiny in India of fintech firms with foreign ownership links, particularly those associated with entities such as Ant Group.
The ownership change coincides with improving financial performance at the company.
One97 Communications reported a 20% year-on-year rise in revenue to Rs 2,194 crore in the December quarter, while posting a net profit of Rs 225 crore, its third consecutive profitable quarter.
