Paytm, the India-based digital payments company, plans to file for a new general insurance license, according to a report Sunday (May 15) from the Economic Times.
Paytm said it wants to enter the general insurance sector, saying it was “bullish” about the potential.
The decision to pursue a new license comes after Paytm decided not to buy 100% of Raheja, which provides insurance solutions, the report noted. The filing about that incident said the agreement was terminated automatically after the sale hadn’t been completed within the time period the parties had agreed on.
This time the company proposes a majority shareholding with a 74% upfront equity stake.
The report from Economic Times says Paytm’s approach in the insurance industry comes at a time when it is ubiquitous and popular in India, and as tech-empowered insurance grows in India.
See also: Paytm CEO: Investors Don’t Have Access to User Data
PYMNTS wrote that Paytm CEO Vijay Shekhar Sharma has said investors in the company don’t have access to customer data, contrary to reports about user info being leaked to Chinese companies.
The company has been prohibited from accepting new customers by the Reserve Bank of India.
And the country’s central bank and regulatory body have ordered Paytm Payments Bank to audit the company’s IT systems because of the concerns.
This comes after reports from March that Paytm was being audited by the RBI over the concerns about data sharing, and that it allegedly didn’t have adequate KYC documentation.
Paytm denied this and Sharma reportedly said no investor had access to the company’s customer database.
In addition, he said the country’s central bank hadn’t raised any concerns over data storage or access.
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