After the mobile wallet business and e-commerce platform, Paytm is now ready to enter the insurance market. Paytm and its founder Vijay Shekhar Sharma will buy a 100% stake in Raheja QBE General Insurance. This deal will be worth Rs. 570 crores.
Digital payment platform Paytm and its founder Vijay Shekhar Sharma on Monday announced the acquisition of Mumbai-based private general insurance company Raheja QBE.
Raheja QBE started operations in 2009. It is a joint venture of Prism Johnson Limited and QBE Insurance Group. QBE Insurance is one of Australia’s largest insurance companies.
Prism Johnson Limited holds a 51% stake in Raheja QBE General Insurance Company Limited (RQBE). It has approved the sale of its entire stake to QORQL Private Limited for Rs 289.68 crore. QORQL Private Limited is a technology company, in which Sharma holds a majority stake. Its remaining stake is with Paytm (owned by One97 Communications).
“This is an important milestone in the journey of Paytm’s financial services and we are very excited to welcome Raheja QBE General Insurance to the Paytm family. Raheja QBE’s strong management team will help us reach insurance to a large population of the country. We want to create a technology-based multi-channel general insurance company.” Paytm President Amit Nayyar said in a statement.
The deal yet to be approved by the Insurance Regulatory and Development Authority of India (IRDA).
Raheja QBE said that all its employees would continue to work from offices in Mumbai and other places. Paytm Raheja will innovate in insurance products and services using QBE’s customer base to increase their reach and acceptance. Vijay Aggarwal, MD, Prism Johnson Limited, said the deal would help take the insurance business to a new high.
QorQl is a healthcare startup which was founded in 2015. It runs its business through Artificial Intelligence and Big Data. It offers two services named Qcare and Qhealth.