Fintech firm One97 Communications, owner of the Paytm brand, will now focus on the distribution of insurance products from other insurers after sector regulator Irdai has accepted Paytm General Insurance's registration withdrawal application.
Paytm General Insurance Limited had approached the Insurance Regulatory and Development Authority of India (Irdai) for the withdrawal of its application for registration as a "General Insurance Company" for being a manufacturer of general insurance products.
"We have been further informed by PGIL that its request for withdrawal of the aforesaid application has been accepted by IRDAI via a letter dated June 12, 2024.
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"As mentioned in our previous communication, the move aligns with our focus on doubling down on insurance distribution across the Health, Life, Motor, Shop, and Gadgets segments, facilitated through our wholly-owned subsidiary Paytm Insurance Broking Private Ltd. (PIBL)," Paytm said.
Paytm said that it aims to innovate on small-ticket insurance products for consumers and merchants alike by focusing on small-ticket general insurance offerings along with our partners and leveraging the strength of Paytm’s distribution to increase insurance penetration to a wider audience.
Meanwhile, a report by InGovern shows that if Paytm focuses on its core business and reverses the consumer and merchant bases, it can make a strong comeback. As per the Financial Express, the report says, “A leaner organizational structure will mean greater people productivity, improvement of business processes, and a re-evaluation of specific business segments.”
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Paytm also recently laid off an undisclosed number of employees. As per the company, this is part of the restructuring process. To ensure a smooth transition for those affected, the company has claimed that they are providing outplacement support to the employees. The company has also mentioned that they are “disbursing bonuses that were due to employees, ensuring fairness and transparency in the process.”
Additionally, Samsung, a consumer electronics brand, launched flight, bus, movies and events ticket bookings on Samsung Wallet, in partnership with One 97 Communications Limited, the parent of Paytm.
Amidst the ongoing changes in Paytm, its stock prices have risen. It rose by 6.21 per cent at Rs 427.50 at the time of writing. The company's previous close was at Rs 402.50.
(With inputs from PTI)
