What happens, now that Paytm group has walked out of the QBE insurance deal with Raheja?

Paytm, which had signed up to acquire a stake in the insurance unit of the Raheja group in 2020, has now decided to terminate its agreement. The deal was with Prism Johnson of the Raheja Group to purchase 51% stake in Raheja QBE General Insurance. Paytm has stated that there was no other issue except that the deal not being consummated within the stipulated time frame that both the parties had agreed upon originally.

However, that does not change the plans of Paytm to enter the general insurance sector in India. Paytm has underlined that it remained very positive on the non-life insurance segment and plans to seek a new license for general insurance from the IRDA. The deal was to acquire 51% in Raheja QBE for a sum of Rs290 crore from Prism Johnson. Paytm was to also acquire the 49% owned by QBE of Australia, but for now the deal has been called off.