Paytm to acquire Raheja QBE General Insurance to expand its financial services offerings
Digital payments platform Paytm is set to acquire 100% stake in Mumbai-based private sector general insurer Raheja QBE for INR 568 Cr. The acquisition is subject to approval from the Insurance Regulatory and Development Authority of India (IRDAI).
Paytm, which was founded in 2010 by Vijay Shekhar Sharma, is currently one of the biggest digital payments platforms in India, standing neck-to-neck with other giants like Google Pay and PhonePe.
Raheja QBE started its operations in 2009, Raheja QBE is owned 51% by Prism Johnson and 49% by QBE Australia. The company said that all employees of Raheja QBE would continue working at Mumbai and other locations.
On the above development, Amit Nayyar, President, Paytm said, “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., said, “We are announcing the sale transaction of our entire 51 percent stake in Raheja QBE General Insurance Company Limited. This move will help the insurance business scale up to new heights by leveraging the large customer base and innovative products offered by Paytm.”
Through this business acquisition Paytm aims to use its large consumer base and merchant ecosystem to innovate insurance products and services to accelerate its reach and adoption.
