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Paytm to file for new license for general insurance
May 16, 2022
Digital payments and financial services organization Paytm has said that it will look for another general insurance license with a new application, pointed toward acquiring a greater part of shareholding with a 74 percent upfront equity stake.
In a regulatory filing, Paytm reiterated its intention to make inroads in the overall insurance sector, as it is extremely bullish about its potential.
Paytm said it stays bullish on its roadmap for general insurance, “and we plan to look for essential endorsements for another overall protection permit, wherein we hold a 74 percent larger part shareholding forthright.” Paytm is inseparable from digital payments in India – having spearheaded QR code and wallet patterns in the country. It has additionally effectively forayed into financial services as its partner-based lending business has recorded rapid growth.
This, alongside the growing technology-led insurance infiltration in India, presently gives the organization confidence to file for another application, where One 97 Communications Ltd – the parent firm of Paytm – will have an immediate majority shareholding rather than the earlier proposed fully diluted shareholding of 11%.
The decision to seek approval for a new license comes after Paytm and Raheja QBE mutually agreed to discontinue the proposed acquisition of RQBE.
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