Paytm and its own founder and CEO, Vijay Shekhar Sharma, are collectively acquiring Raheja QBE General Coverage Company from your own Rajan Raheja Staff and Australia’s QBE Insurance Staff. Sharma announced Monday that this individual has finalized a cope with Prism Cement to get the latter’s 51% stake in Raheja QBE.
The all-cash offer is reportedly worth Rs. 289. 68 crore(~$ 38 million), which values Raheja QBE at 568 crores(~$ 76 million). He will even get the staying stake within the insurer kept with the Australian company. The acquisition will happen through QORQl Pvt. Ltd, a firm on which Sharma personally holds a good majority stake. Paytm, owned simply by One97 Communications, holds the staying stake in the company.
The acquisition can help Paytm enter the insurance space within its programs to diversify its business and expand its reach across the country. In a statement released earlier today, Paytm president, Amit Nayyar said: “( QBE ‘s) strong administration team will help us speed up our journey of taking coverage to the large population in India with the try to produce a tech-driven, multiple-channel general insurance company”.
In a separate statement, QBE ‘s Australia Pacific CEO, Vivek Bhatia, said the move would support simplifying the group’s business. Began last year, Raheja QBE is generally a joint- venture between Prism Johnson Limited and QBE Insurance Group. It is just a general coverage company that offers insurance items across a wide variety of categories. Which has health, home, vehicles, and much more.
It also provides insurance for commercial properties, and also covers intended for workplace injuries and more. As outlined by TechCrunch, the organization has over 41, 000 clients and, sold 69, 000 fresh policies in FY2019- 2020.