Vijay Shekhar Sharma-led digital funds agency Paytm is gearing as much as foray into the final insurance coverage house with the proposed acquisition of Mumbai headquartered Raheja QBE Normal Insurance coverage Firm.
Paytm, owned by One 97 Communications Restricted, together with Sharma are set to purchase the non-public sector normal insurer from the Rajan Raheja Group and Australia’s QBE Insurance coverage Group Ltd.
The acquisition will probably be routed by QorQl Pvt. Ltd, a expertise agency majority-owned by Sharma and Paytm, per an announcement.
Whereas Raheja group firm Prism Johnson Ltd introduced that it’ll promote its current 51 per cent stake within the insurer to Paytm for Rs 289.68 crore ($38.eight million), the latter individually mentioned it is going to additionally purchase the remaining stake owned by QBE. The transaction would require the approval of the insurance coverage regulator in India.
The transfer comes as Paytm appears to increase its monetary companies choices and democratize normal insurance coverage companies, thereby leveraging its giant shopper base for digital funds and monetary companies choices.
“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,” Paytm president Amit Nayyar mentioned in a media assertion.
In the meantime, Vijay Aggarwal, managing director at Prism Johnson Ltd added: “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.”
However, QBE Australia Pacific Chief Government Officer Vivek Bhatia mentioned: “Today’s announcement marks both a continuation of QBE’s strategy to simplify our business and the beginning of a new & exciting chapter for our strong team at Raheja QBE.”
Late final 12 months, Paytm had raised a whopping $1 billion in a brand new financing spherical led by US-based international asset supervisor T Rowe price with the participation of its current buyers Ant Monetary, SoftBank Imaginative and prescient Fund, and Discovery Capital.