Paytm General Insurance Limited (PGIL), an associate entity of One97 Communications, has withdrawn its general insurance license application with the Insurance Regulatory and Development Authority of India (IRDAI), the company informed the stock exchange on Saturday.
Paytm added that its wholly-owned subsidiary, Paytm Insurance Broking Private Limited (PIBPL), has intensified its focus on insurance distribution to Paytm consumers and SMEs. The company aims to offer small ticket insurance solutions across various general insurance categories, including health, life, motor, shop, and gadgets.
The move will help One97 Communications conserve cash of Rs 950 crore, which was earmarked for investment in PGIL, as per the company.
According to the firm, it is also strengthening partnerships with Digit, Acko, ICICI Lombard, New India, Bajaj Allianz, TATA AIG, Aditya Birla Health, and Universal Sompo to grow the insurance distribution segment.
“…By focusing on small-ticket general insurance offerings and leveraging the strength of Paytm’s distribution, we are committed to increase general insurance penetration to a wider audience,” said a Paytm spokesperson.
Paytm recently announced its quarterly results which saw a revenue jump of 3% to Rs 2,267 crore in Q4 FY24 from Rs 2,334 crore in Q4 FY23. The company also registered EBITDA profitability before ESOP cost.
On a year-on-year basis, the company’s revenue from operations grew 25% to Rs 9,978 crore in FY24 from Rs 7,990 crore in FY23. The firm managed to reduce its net losses by 20% to Rs 1,422 crore in FY24. Meanwhile, Paytm’s EBITDA profitability before ESOP through the fiscal year stood at Rs 559 crore.
