Paytm has also successfully forayed into financial services as its partner-based lending business has registered rapid growth.
Highlight
- Paytm said that it will ask for a new general insurance license along with the new application.
- We intend to get the requisite approvals, in which we have 74 per cent majority shareholding: Paytm
- Paytm’s lending business now has an annual run rate of Rs 20,000 crore.
Digital payments and financial services company Paytm has said it will seek a new general insurance license with a fresh application, aiming to acquire majority stake with 74 per cent upfront equity stake.
In a regulatory filing, Paytm reiterated its intention to foray into the general insurance sector, as it is extremely optimistic about its potential. Paytm said it is upbeat on its roadmap for general insurance, “and we want to get the necessary approvals for a new general insurance license, in which we hold a 74 per cent majority stake.”
Paytm is synonymous with digital payments in India – leading the QR code and wallet trend in the country. It has also successfully forayed into financial services as its partner-based lending business has registered rapid growth.
This, along with increasing technology-led insurance penetration in India, now gives the company the confidence to file for a fresh application, where One97 Communications Limited – Paytm’s parent firm – has a direct majority stake instead of the full one proposed earlier. Will be Diluted shareholding of 11 per cent.
The decision to seek approval for the new license comes after Paytm and Raheja QBE mutually agreed to call off the proposed acquisition of RQBE.
In an exchange filing, the company said, “Our associate company, Paytm Insurtech Pvt Ltd, had entered into a share purchase agreement to acquire 100 per cent of Raheja QBE General Insurance Company Ltd. As the share sale and purchase transactions have not been concluded The time period envisaged by the parties under the said Agreement, the Agreement shall stand terminated automatically.”
In a separate filing on Sunday, Paytm shared its business operating update for the month of April. Paytm’s lending business now has an annual run rate of Rs 20,000 crore.
In April alone, the company disbursed 2.6 million loans worth Rs 1,657 crore (USD 221 million) through its platform. The company reported over 100 per cent year-on-year growth in total merchant payment volume or GMV, taking the total to Rs 0.95 lakh crore (USD 12.7 billion).
Paytm had 73.5 million monthly transacting users. In the offline payments segment, the company’s total device deployment across India has crossed 30 lakhs.
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