Paytm and its CEO Vijay Shekhar Sharma will acquire Raheja QBE, a Mumbai-based private sector general insurer, for almost Rs 568 crore to extend the digital transactions company’s financial offerings.
Raheja QBE is 51 percent held by Prism Johnson and 49 percent by QBE Australia, one of Australia’s largest insurers. And now, Paytm will obtain both stakes to convert as 100 percent owner of the company. Raheja QBE employees would continue operating in Mumbai, and other places stated the company.
As per the regulatory filings done by Prism Johnson, which owns 51 percent stake, Raheja QBE will be marketed “to QORQL Private Limited, a technology company with a majority shareholding of Vijay Shekhar Sharma and remaining held by Paytm (owned by One97 Communications Limited), for an overall consideration of Rs. 289.68 crores”.According to sources, the overall amount of the deal is Rs 568 crore.
One97 is the parent company of Paytm. The procurement is expected to settle by March 31, 2021, depending on permissions from the Insurance Regulatory and Development Authority of India (IRDAI).