Paytm Subsidiary FGTPL Receives ₹142 Cr Loan Waiver Amid Gaming Exit

One 97 Communications' subsidiary, FGTPL, will benefit from a ₹142 crore loan waiver granted by its shareholder, AGTech Media Holdings Limited. The subsidiary had previously received external commercial borrowings (ECBs) from AGTech totalling ₹131.94 crore.

Loan Waiver Details

One 97 Communications (Paytm) announced that its subsidiary, First Games Technology Private Limited (FGTPL), has received a waiver for its outstanding loan of approximately ₹142 crore from shareholder AGTech Media Holdings Limited. The waiver was approved by FGTPL's board on March 27, 2026. This action follows FGTPL's discontinuation of its real money gaming business. The subsidiary had previously secured multiple external commercial borrowings (ECBs) from AGTech between June 2021 and April 2022, totalling ₹131.94 crore. Paytm clarified that this waiver has no adverse financial impact on the company, as both its investment in FGTPL and the shareholder loan were already fully impaired in its books.

Strategic Implications

The loan waiver resolves FGTPL's financial obligation, marking a clean exit from a business segment impacted by regulatory shifts. For Paytm, this move streamlines subsidiary operations and allows the company to redirect resources toward its core digital payments and financial services.

Background: Gaming Exit

FGTPL was One 97 Communications' entry into the real money gaming sector. India's online gaming regulations have evolved significantly, notably with the Goods and Services Tax (GST) council imposing a 28% tax on the full face value of bets. This pressure led FGTPL to cease operations. AGTech Media Holdings, a Chinese entity invested in Paytm's ecosystem, provided key financing to FGTPL. The loan waiver resolves outstanding liabilities for the former gaming venture.

Key Outcomes

With the waiver, FGTPL's debt to AGTech Media Holdings is cleared, simplifying its financial books. Paytm faces no cascading financial impact as the investment was previously written off. The group's focus now fully shifts away from the real money gaming segment.

Regulatory Environment

Although Paytm reports no adverse financial impact from this specific waiver, India's regulatory environment for online gaming remains complex. Future ventures in similar sectors will require careful navigation of evolving laws and taxation policies.

Gaming Sector Challenges

Other Indian gaming companies like Nazara Technologies and Delta Corp are also navigating challenging regulatory waters. Nazara Technologies, a diversified gaming platform, has adapted by focusing on other segments. Delta Corp, involved in casino and online gaming, has faced significant tax demands, underscoring the financial pressures within the sector and the need for strategic adaptation.

Looking Ahead

Investors will monitor future strategic directives for FGTPL, Paytm's sustained focus on its core digital payments and financial services, and further developments in India's online gaming regulatory framework. How Paytm manages its subsidiary portfolio amidst sector-specific challenges will also be key.