In a major development, financial technology platform Paytm, owned by One 97 Communications Limited) along with Vijay Shekhar Sharma, is set to acquire Mumbai-based private sector general insurer Raheja QBE. As of now, Raheja QBE is owned 51% by Prism Johnson and 49% by QBE Australia. Paytm is set to acquire both stakes and would own 100% of the company. This strategic acquisition is through QorQl Pvt. Ltd, a technology company with majority shareholding of Vijay Shekhar Sharma and remaining held by Paytm.
“The acquisition is subject to customary conditions, including approval from the Insurance Regulatory and Development Authority of India (IRDAI). All employees of Raheja QBE would continue working at Mumbai and other locations. After enabling millions of Indians with services of homegrown Payments bank, it is now setting sights on democratising general insurance services” Paytm said in a company statment.
Amit Nayyar, President at Paytm said, “It is an important milestone in Paytms 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.
Commenting on the development, QBE Australia Pacific Chief Executive Officer, Vivek Bhatia said, Todays announcement marks both a continuation of QBEs strategy to simplify our business and the beginning of a new & exciting chapter for our strong team at Raheja QBE.
Vijay Aggarwal, Managing Director Prism Johnson Ltd., “This move will help the insurance business scale up to new heights by leveraging the large customer base and innovative products offered by Paytm. I would like to thank Raheja QBEs management team and all the employees for their strong contribution and commitment over the years and wish them every success.”