Paytm, India's most valued startup along with its founder has confirmed that they are acquiring Mumbai-based insurance company Raheja QBE for $76 million. Notably, Raheja QBE is a joint venture between Raheja Group and QBE Insurance. The majority stake in the firm is owned by QorQl Pvt. Ltd.
Both Raheja Group and QBE Insurance joined hands in 2008. The company offers insurance services and covers an individual’s health, home, and vehicles along with offering commercial properties and workplace injuries.
Paytm President Amit Nayyar talking about the deal said that 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.”
Paytm plans to utilize the large consumer strength and the merchant ecosystem which has been acquired by Raheja QBE to get more people to purchase innovative insurance products and services through the Paytm app.
Prism Johnson Ltd, the firm which owns 51% stake sold the entire stake. Managing director of the firm Vijay Agarwal said that "We are announcing the sale transaction of our entire 51 percent stake in Raheja QBE General Insurance Company Limited. This move will help the insurance business scale up to new heights by leveraging the large customer base and innovative products offered by Paytm."
It will be interesting to see how Paytm manages to use the strong presence of Raheja QBE to offer innovative products to its massive reach. Notably, both the firms will have to wait for the nods of regulatory bodies like the Insurance Regulatory and Development Authority of India (IRDAI) for the final closing of the deal.
Image courtesy: Paytm Blog