Monday, July 6, 2020

Paytm, CEO Sharma to acquire general insurer Raheja QBE for Rs 568 crore


Raheja QBE will be acquired through QorQl Pvt. Ltd, a technology company in which Vijay Shekhar Sharma has majority shareholding.


Paytm and its CEO Vijay Shekhar Sharma will acquire Raheja QBE, a Mumbai-based private sector general insurer, for nearly Rs 290 crore to expand the digital payments company's financial services.

Raheja QBE, which started operations in 2009, is a joint venture between Prism Johnson Limited and QBE Insurance Group, one of Australia’s largest insurers. Raheja QBE employees would continue working in Mumbai and other places, said the company.

According to regulatory filings made by Prism Johnson, Raheja QBE will be sold "to QORQL Private Limited, a technology company with majority shareholding of Vijay Shekhar Sharma and remaining held by Paytm (owned by One97 Communications Limited), for an aggregate consideration of Rs. 289.68 Crores".

One97 is the parent company of Paytm. The acquisition is expected to close by March 31, 2021, depending on approvals from the Insurance Regulatory and Development Authority of India (IRDAI).

"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,” said Paytm president Amit Nayyar.

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