The deal will reportedly accelerate the launch of its own insurance business in 24-30 months.
Digital payments firm Paytm and its Founder and CEO Vijay Shekhar Sharma will fully acquire Raheja QBE General Insurance Company for $76 million. The deal will reportedly accelerate the launch of its own insurance business in 24-30 months.
Currently, Prism Johnson has a 51 per cent stake in the insurance company and remaining 49 per cent is held by QBE Australia. Paytm and Sharma is set to acquire both stakes and will own 100 per cent of the company.
Paytm in its release said the strategic acquisition will be through QorQl, a technology company with majority shareholding with Vijay Shekhar Sharma and the remaining held by Paytm. The acquisition would be subject to customary conditions, including approval from the Irdai.
Amit Nayyar, President, 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.”