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Digital payments and financial services company Paytm has said that it will seek a new general insurance license with a fresh application, aimed at gaining majority shareholding with a 74% upfront equity stake. The company reiterated its intention to make inroads in the general insurance sector, as it is extremely bullish about its potential.

“we intend to seek requisite approvals for a new general insurance license, wherein we hold a 74 per cent majority shareholding upfront," the company announced in an exchange filing. The decision to seek approval for a new license comes after Paytm and Raheja QBE mutually agreed to discontinue the proposed acquisition of RQBE.

Its associate company, Paytm Insuretech Private Limited, had entered into a share purchase agreement to acquire 100 per cent 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," Paytm added.

In a separate filing on Sunday, Paytm shared its business operating update for the month of April. The platform's lending business witnessed an annualised run-rate of 20,000 crore of disbursements while device deployment crossed the 3 million mark.

In its performance updates for April 2022, One 97 showed that Paytm's number of loans disbursed through our platform grew 449% yoy to 2.6 million loans, while the value of loans disbursed increased by 749% yoy to 1,657 crore ($221 million), an annualised run-rate of approximately 20,000 crore.

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