Paytm's Strategic Shift: Focus on Partnerships Over NBFC Licence

Paytm, operated by One97 Communications, is not pursuing an NBFC licence, focusing instead on partnerships with lending partners for distribution, technology, and collections. Despite losing a banking licence, Paytm's financial performance improved significantly, recording profits and revenue growth in the recent financial year.

Fintech giant One97 Communications, the parent company of Paytm, is steering clear of pursuing a non-banking financial company (NBFC) licence, according to their Group CFO. Instead, Paytm is prioritizing collaborations, with a focus on distribution, technology, and collections while relying on blue-chip lending partners for capital, risk, and market cyclicality management.

Despite a setback in April with the Reserve Bank of India withdrawing Paytm Payments Bank's banking licence due to non-compliance, One97 Communications remains optimistic. The firm has no ties to the beleaguered bank following an impairment of its investments. Meanwhile, Paytm reported a consolidated profit of Rs 183 crore for the quarter ending March 2026, bouncing back from a prior loss.

The company saw an 18.4% rise in revenue during the same quarter, supporting an annual revenue growth of 22.2% in FY26. These figures showcase Paytm’s robust financial health and its strategic focus on leveraging market opportunities without an NBFC licence.