One97 Communications on Saturday said an associate company, Paytm General Insurance Limited (PGIL), has withdrawn its general insurance licence application with the Insurance Regulatory and Development Authority of India (IRDAI).
The company informed the stock exchanges the move will help it conserve cash to the tune of Rs 950 crore, which had been set aside for an investment in PGIL.
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Paytm said its wholly-owned subsidiary, Paytm Insurance Broking Private Limited (PIBPL), has intensified its focus on insurance distribution to Paytm consumers and SMEs. The company plans to offer small ticket insurance solutions across various general insurance categories, including health, life, motor, shop, and gadgets.
“PIBPL brings affordable, easy to understand insurance products to our consumers and merchants, making their everyday lives easier,” the company said.
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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,” a Paytm spokesperson said.
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Paytm reported a weak set of numbers for the March quarter, posting a net loss of Rs 550 crore. The total revenue declined 3% y-o-y to Rs 2,270 crore with the revenues from payments and financial services falling. Disbursements fell sharply by 54% y-o-y. Revenues from marketing services (commerce and cloud services) also were down by 23% sequentially to Rs 400 crore.
