Paytm, India’s most valuable startup, and its co-founder and chief executive, Vijay Shekhar Sharma, announced on Monday they have reached an agreement to acquire general insurer Raheja QBE for a sum of $76 million as the financial services startup looks to tap the nation’s booming insurance market.
Sharma is acquiring Raheja QBE through QorQl Pvt. Ltd, a firm in which he owns majority stake with Paytm owning the remainder. Raheja QBE, which offers insurance services to cover an individual’s health, home, vehicles, as well as commercial properties, and workplace injuries, is owned by Prism Johnson (51%) and QBE Australia (49%.) QorQl is acquiring 100% of Raheja QBE as part of the agreement, the two entities said.
Paytm, whose services are used by tens of millions of Indians each month, said the acquisition will help it “democratize general insurance services” in the country.
Raheja QBE’s “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 Amit Nayyar, President of Paytm, in a statement.
More to follow…