Paytm to acquire Raheja QBE General Insurance to expand its financial services
India's homegrown 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. The acquisition is subject to customary conditions, including, approval from the Insurance Regulatory and Development Authority of India (IRDAI). Raheja QBE which started its operations in 2009, is a joint venture between Prism Johnson Limited and QBE Insurance Group, one of Australia’s largest insurers. The company said that all employees of Raheja QBE would continue working at Mumbai and other locations.
This strategic acquisition is through QorQl Pvt. Ltd, a technology company with majority shareholding of Vijay Shekhar Sharma and remaining held by Paytm. After enabling millions of Indians with services of homegrown Payments bank, it is now setting sights on democratising general insurance services.
India's Paytm has a large consumer base and merchant ecosystem with extensive knowledge of consumer behaviour. 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 at 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.”
Commenting on the development, QBE Australia Pacific Chief Executive Officer, Mr. Vivek Bhatia said, “Today’s announcement marks both a continuation of QBE’s 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., "We are happy to announce the sale transaction of our entire 51 percent stake in Raheja QBE General Insurance Company Limited. Our decision to sell our stake in Raheja QBE is in line with our mission to create sustainable shareholder value and will enable us to focus our resources on our core businesses. 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 QBE’s management team and all the employees for their strong contribution and commitment over the years and wish them every success."