Technology platform Paytm — owned by One 97 Communications Limited — along with its promoter Vijay Shekhar Sharma is set to acquire Mumbai-based Raheja QBE General Insurance for around Rs 568 crore.
Raheja QBE is currently owned 51 per cent by Prism Johnson and 49 per cent by QBE Australia, Paytm said in a statement. Paytm and Sharma is set to acquire both stakes and would own 100 per cent of the company.
All employees of Raheja QBE would continue working at Mumbai and other locations.
“This acquisition is through QorQl Pvt Ltd, a technology company with majority shareholding of 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,” it said in a statement.
Sharma has the majority shareholding in QORQL and the remaining is held by Paytm.
“Paytm has a large consumer base for its digital payments & financial services offerings. It has also built an extensive merchant ecosystem empowering them with end-to-end business solutions. The insurance company would leverage this network to build innovative insurance products to accelerate its reach & adoption.
“It is in furtherance of Paytm’s mission of driving financial inclusion for over half a billion Indians,” the company said.
Raheja QBE had gross written premium of Rs 158.12 crore, showing a year-on-year growth of 36.3 per cent in FY20. It had a net loss of Rs 62.1 crore compared to Rs 20.3 crore in the year-ago period.
The acquisition is subject to customary conditions, including approval from the Insurance Regulatory and Development Authority of India.
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