Following the recent cancellation of Paytm Payment Bank’s license by the Reserve Bank of India, significant changes are underway at One97 Communication, the parent company of Paytm.
MD Vijay Shekhar Sharma is spearheading a series of transformations within the company’s operations.
Emphasis on Restructuring and Expansion
1) Reducing Workforce and Exploring New Ventures
The company is actively streamlining its workforce while simultaneously gearing up to venture into new business avenues.
2) New Direction
Instead of general insurance, Paytm is now prioritizing small gadget insurance and positioning itself as a leading financial service distribution platform.
3) Operational Adjustments
MD Vijay Shekhar Sharma has initiated several operational changes within the company. These include streamlining the workforce by reducing employee numbers.
Focus Shift to Insurance Sector
Amidst the challenges, Paytm has strategically chosen to amplify its presence in the insurance sector, aiming to mitigate the impact of recent setbacks.
Paytm has opted to enhance its focus on insurance distribution, opting to withdraw its application for a general insurance license.
Initially earmarked with a substantial investment of Rs 950 crore, the company has redirected its efforts towards distributing smaller insurance products,
such as life, health, vehicles, shops, and gadgets, instead of pursuing a general insurance license.
In a statement, Paytm founder Vijay Shekhar Sharma revealed that Paytm General Insurance Limited (PGIL), a subsidiary of One97 Communications Limited,
has withdrawn its application for a general insurance license from the Insurance Regulatory and Development Authority of India (IRDAI).
The company has now shifted its focus towards small gadget insurance, envisioning itself as a leading financial service distribution platform.
This strategic move aligns with the company’s vision to leverage the insurance distribution portfolio established by its wholly-owned subsidiary, Paytm Insurance Broking Private Limited.
