Paytm consider JV option for insurance biz

Initial public offering bound Paytm might get an external partner for its general insurance venture, even as the digital payments organization is in the process acquiring Raheja QBE General Insurance Company, individuals aware of the matter said.

This might make it simpler to get regulatory clearance, they showed. While Paytm declared the Raheja acquisition last year, the deal is yet to close.

Indian law on foreign ownership in the insurance sector limits foreign direct investment at 74%.

Despite the fact that Paytm is incorporated in India, it is treated as an foreign organization by financial regulators as a greater part of its investors are foreign.

According to people, insurance regulator IRDAI is agreeable to a more diversified ownership framework for a general insurance entity. Therefore, a joint venture by Paytm with a homegrown player to set up this organization might alleviate some of the regulator’s fear, they said.