The decision to seek approval for a new license comes after Paytm and Raheja QBE agreed to discontinue their proposed acquisition of RQBE
The decision to seek approval for a new license comes after Paytm and Raheja QBE agreed to discontinue their proposed acquisition of RQBE
Digital payments and financial services company Paytm has announced that it will seek a new general insurance license with a new filing aimed at acquiring majority ownership with a 74% equity stake upfront.
In a regulatory filing, Paytm reiterated its intention to break into the general insurance sector as it is extremely optimistic about its potential.
Paytm said it remains optimistic about its general insurance roadmap, “and we intend to seek the necessary approvals for a new general insurance license in which we hold a 74% controlling interest upfront.” Paytm is synonymous with digital payments in India – it has pioneered QR (Quick Response) codes and wallet trends in the country. It has also successfully ventured into financial services as its partner-based lending business has seen rapid growth.
Along with increasing technology-driven insurance penetration in India, the company is now giving confidence in filing a new application in which One 97 Communications Ltd – Paytm’s parent company – will hold a direct majority stake instead of the previously proposed fully diluted stake of 11%.
The decision to seek approval for a new license comes after Paytm and Raheja QBE agreed to discontinue their proposed acquisition of RQBE.
The company in the IPO said: “Our associate, Paytm Insuretech Private Limited, had entered into a share purchase agreement to acquire 100% of Raheja QBE General Insurance Company Limited. The period contemplated by the parties under the said agreement will expire Agreement automatically.” In a separate filing on Sunday, Paytm shared its business update for the month of April. Paytm’s lending business now has an annualized run rate of 20,000 crore.
In April alone, the company disbursed 2.6 million loans worth ₹1,657 crore ($221 million) through its platform. The company also saw over 100% year-on-year growth in total merchant payment volume, or GMV, which totaled ₹0.95 lakh crore ($12.7 billion).
Paytm’s monthly transactions totaled 73.5 million. In the offline payment segment, the company has deployed a total of 3 million devices across India.
