Vijay Shekhar, CEO and founder of Paytm is entering into insurance business.With 100% investment in Raheja QBI general insurance for almost rupees 570 crore.
Vijay Shekhar will hold 51% of stake and the rest will be held by Paytm.
The idea is to expand their digital payment service. Paytm is used by tens of million users from India and is most trusted digital service.
“Raheja QBE would be sold to QorQl, a tech company with majority shareholding of Vijay Shekhar Sharma and remaining held by Paytm ( owned by one 97 communication) fine aggregate consideration of rupees 289.68 crore ” – according to Prism Johnson filing.
Paytm is about to acquired QBE Australia’s 49% and Prism Johnson’s 51% in Raheja QBE. As a result Paytm will become 100% stake owner.
Raheja QBE is insurance service for individuals health, home and vehicles. Which is owned by Prism Johnson (51%) and QBE Australia (49%.) QorQl is acquiring a 100% stake in Raheja QBE as part of the agreement,
“It is an important milestone in Paytm’s financial services journey, and we are excited to welcome Raheja QBE into the family. Its strong management team will help us create a tech-driven, multi-channel general insurance firm with innovative and affordable insurance products,” said Paytm President Amit Nayyar.
“Democratize general insurance services in the country. Mumbai-headquartered Raheja QBE has amassed over 41,000 customers, and sold 69,000 new policies in the financial year that ended in March this year”, statement from Paytm official.
“Our decision to sell our stake 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”, said Vijay Agarwal managing director of Prism Johnson.
