Paytm shares increased on June 13 following the business's announcement to stock markets that IRDAI had accepted Paytm General Insurance's registration withdrawal application. One97 Communications, the parent company of fintech, would now concentrate on distributing insurance products from other insurers.
The Insurance Regulatory and Development Authority of India (IRDAI) was contacted by Paytm General Insurance Limited regarding the withdrawal of its application to be registered as a "General Insurance Company" and to manufacture general insurance products.
"The move aligns with our focus towards doubling down on insurance distribution across Health, Life, Motor, Shop & Gadgets segments, facilitated through our wholly-owned subsidiary Paytm Insurance Broking Private Ltd (PIBL)," Paytm stated.
By concentrating on small-ticket general insurance services with its partners and utilizing the power of Paytm's distribution, the company hopes to innovate on small ticket insurance products for both consumers and merchants. Paytm anticipates that this would help insurance reach a larger audience in India.
Brokerages had differing opinions on Paytm's loan business strategy. Bernstein stated that a permanent switch to distribution-only loans would result in "a much weaker model" since it would become more of a loan distribution agent whereas being a loan service provider offers more value.
According to reports earlier this week, Paytm is also going through a restructure, and as part of the plan, the business is aiming to fire a lot of staff. Paytm has refuted this, claiming that no new layoffs have been implemented. A corporate representative informed a news agency that it offers outplacement assistance to workers who had "resigned."
Additionally, earlier this week, a credible source revealed that Renu Satti, Kiran Vasireddy, Nehul Malhotra, and other important former workers of Paytm are being contacted by the company's CEO and founder, Vijay Shekhar Sharma, in an effort to bolster plans for a comeback.
Some time ago, talks were started with Vasireddy and Malhotra, who may be in charge of Paytm's user growth plan. As he assumes direct control of each company, Vijay has been in communication with his close advisors and intends to revamp the whole team, people close to him informed the magazine. On the National Stock Exchange, Paytm shares closed the previous session 5.5% higher at Rs 401.50. Due to revisions to the circuit restriction and business updates, the stock has increased by almost 16 percent over the last five days.
