India’s financial technology platform Paytm is set to acquire Mumbai-based private sector general insurer Raheja QBE General Insurance Co. Ltd.
The acquisition is subject to customary conditions, including approval from the Insurance Regulatory and Development Authority of India (IRDAI). Financial details of the purchase were not disclosed.
After enabling millions of Indians with the services of its homegrown Paytm Payments Bank, Paytm said it is now setting its sights on “democratizing general insurance services.”
Raheja QBE, which started operating in 2009, is a joint venture between Prism Johnson Ltd. (owner of 51% of the company) and Australia’s QBE Insurance Group.
The company said that all employees of Raheja QBE would continue working at Mumbai and other locations.
This strategic acquisition is being made through technology company QorQl Pvt. Ltd, which is owned by Paytm founder Vijay Shekhar Sharma (as majority shareholder) and Paytm (as a minority shareholder).
Paytm has a large consumer base and merchant ecosystem with extensive knowledge of consumer behavior. The company would leverage this reach to innovate insurance products and services to accelerate its reach & adoption. It is in furtherance of Paytm’s mission of driving financial inclusion for over half a billion Indians.
Amit Nayyar, president of 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.”
QBE Australia Pacific Chief Executive Officer Vivek Bhatia said the agreed sale “marks both a continuation of QBE’s strategy to simplify our business and the beginning of a new and exciting chapter for our strong team at Raheja QBE.”
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