Paytm to file for new license, says bullish about its roadmap for general insurance

PTI, May 16, 2022, 9:27 AM IST

Digital payments and financial services company Paytm on Sunday said it will seek a nod for a new general insurance license with a fresh application, aimed at gaining majority shareholding with a 74 percent upfront equity stake.

In a regulatory filing, Paytm reiterated its intention to make inroads in the general insurance sector, as it is extremely bullish about its potential.

Paytm said it remains bullish on its roadmap for general insurance, ”and we intend to seek requisite approvals for a new general insurance license, wherein we hold a 74% majority shareholding upfront.”

Paytm is synonymous with digital payments in India — having pioneered QR code and wallet trends in the country. It has also successfully forayed into financial services as its partner-based lending business has recorded rapid growth.

This, along with the growing technology-led insurance penetration in India, now gives the company confidence to file for a new application, where One 97 Communications Ltd — the parent firm of Paytm — will have a direct majority shareholding instead of the earlier proposed fully diluted shareholding of 11 percent.

The decision to seek approval for a new license comes after Paytm and Raheja QBE mutually agreed to discontinue the proposed acquisition of RQBE.

The company in the exchange filing said, ”Our associate company, Paytm Insuretech Private Limited, had entered into a share purchase agreement to acquire 100% of Raheja QBE General Insurance Company Limited. As the share sale and purchase transaction has not been consummated within the time period envisaged by the parties under the said agreement, the agreement has automatically terminated.”

In a separate filing on Sunday, Paytm shared its business operating update for the month of April. Paytm’s lending business now has an annualized run rate of Rs 20,000 crore.

In April alone, the company disbursed 2.6 million loans through its platform worth Rs 1,657 crore ($221 million). The company also recorded over 100% year-on-year growth in total merchant payments volume or GMV, aggregating to Rs 0.95 lakh crore ($12.7 billion).

Paytm’s monthly transacting users stood at 73.5 million. In the offline payments segment, the company’s total device deployment across India has crossed 3 million.

Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.

Top News

No adjustment politics in Lok Sabha elections: Karnataka Deputy Chief Minister D K Shivakumar

Cricketers, filmstars, celebrities arrive for Ambani wedding

Mangaluru: Police crack theft cases — Six arrested; cash, goods worth lakhs recovered

Govt to observe June 25 as ‘Samvidhaan Hatya Diwas’ to commemorate Emergency

Difficult to get funds for development works because of guarantees, says CM’s economic advisor

Ex-Andhra Pradesh CM Jagan Mohan Reddy, two IPS officers booked in ‘attempt to murder’ case

Karnataka BJP leaders on way to protest against MUDA ‘scam’ detained in Bengaluru

Related Articles More

Bengaluru Tech Summit to be held in November

IAMAI flags ‘concerns’ over Karnataka’s draft bill on platform-based gig workers

‘Cutting Emissions’: UP govt announces tax sops for Hybrid Vehicles

Karnataka nets Rs 6,450 crore investment commitment from Japan and South Korea: Minister M B Patil

Markets sink below record levels; Sensex tanks over 400 pts on widespread profit booking


Anant Ambani Wedding

BJP & Congress members clash

Aparna Vastarey

Kalaripayattu Meenakshi Amma

President Droupadi Murmu

Latest Additions

Rishab Shetty’s ‘Kantara’ wins big at Filmfare Awards South 2023

Delhi: Photo exhibition pays homage to Kargil bravehearts at Rajiv Chowk metro station

No adjustment politics in Lok Sabha elections: Karnataka Deputy Chief Minister D K Shivakumar

Ambani wedding: Police make special traffic arrangements, ‘No Entry’ on some routes

Video showing Puja Khedkar’s mother threatening group of men with gun goes viral; cops to probe

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.