Leading digital payments platform Paytm and its founder Vijay Shekhar Sharma on Monday announced the purchase of Mumbai-based private business general insurer Raheja QBE, to democratize overall insurance providers in the nation.
Prism Johnson Ltd accepted divestment of its holding of 51 percent in Raheja QBE General Insurance Company Limited (RQBE) into QORQL Private Limited, a tech firm with majority shareholding from Sharma along with the rest preserved by Paytm (possessed by One97 Communications Limited), to an aggregate consideration of Rs 289.68 crore.
“It’s a significant landmark in Paytm’s financial solutions travel and we’re really eager to welcome Raheja QBE General Insurance to the Paytm household,” Amit Nayyar, Paytm president, explained in an announcement.
“Its strong administration team can allow us to accelerate our travel taking insurance to the massive people of India together with the intention to make a tech-driven, multi-channel general insurance provider,” he further added.
The purchase is subject to customary conditions, for example endorsement by the Insurance Regulatory and Development Authority of India (IRDAI).
Raheja QBE explained that its workers would keep on functioning at Mumbai along with other places.
“The statement marks a continuation of QBE’s approach to simplify our company and the start of a brand new and exciting chapter to our powerful team in Raheja QBE,” explained Vivek Bhatia, QBE Australia Pacific CEO.
Paytm will leverage its consumer base to innovate auto insurance services and products to hasten its adoption and reach.
“This movement will assist the insurance company scale to new heights by simply leveraging the massive customer base and advanced products provided by Paytm,” stated Vijay Aggarwal, managing director, Prism Johnson Ltd.