The financial technology platform Paytm is set to acquire Mumbai-based private sector general insurer, Raheja QBE. However, the company will acquire 100 per cent stake in Raheja QBE, subject to the Insurance Regulatory and Development Authority of India (IRDAI) clearance and other approvals.
Without disclosing the amount, Paytm informed it will acquire 100 per cent stake in the company. At present, Raheja QBE is owned 51 per cent by Prism Johnson and 49 per cent by QBE Australia.
All employees of Raheja QBE would continue working at Mumbai and other locations. This strategic acquisition is through QorQl Pvt. Ltd, a technology company with majority shareholding of Vijay Shekhar Sharma and remaining held by Paytm.
After venturing into Payments bank, Paytm is now setting sights on democratising general insurance services.
Paytm has a large consumer base for its digital payments and financial services offerings. It has also built an extensive merchant ecosystem empowering them with end-to-end business solutions.
The insurance company would leverage this network to build innovative insurance products to accelerate its reach and adoption.
Nayyar, President at Paytm said, “It is an important milestone in Paytm’s financial services journey, and we are very excited to welcome Raheja QBE General Insurance into the Paytm family. Its strong management team will help us accelerate our journey of taking insurance to the large population of India with the aim to create a tech-driven, multi-channel general insurance company with innovative and affordable insurance products.”
Vijay Aggarwal, Managing Director Prism Johnson Ltd, “We are happy to announce the sale transaction of our entire 51 percent stake in Raheja QBE General Insurance Company Limited. Our decision to sell our stake in Raheja QBE is in line with our mission to create sustainable shareholder value and will enable us to focus our resources on our core businesses.“