Eight months after Paytm announced the acquisition of Raheja QBE to signal its entry into the insurance business, the transaction has yet to close. According to two people aware of the matter, the Insurance Regulatory Development Authority of India has dragged its heels on signing off on the transaction. This limbo, according to both people, one of whom is a former Paytm executive, seems to have resulted in Raheja QBE walking out of the transaction. We, however, could not independently verify whether or not talks have ended.
“IRDA is a totally unpredictable regulator,” says one of the two executives; he requested not to be named because Paytm insurance and his company are competitors. “IRDA doesn’t listen to anybody. It famously made HDFC wait 18 months to clear the Apollo Munich transaction while Sachin Bansal’s Navi got clearance on the DHFL transaction in four weeks.”
In July 2020, Paytm announced that it has acquired general insurance company Raheja QBE