Raheja QBE is owned 51% by Prism Johnson and 49% by QBE Australia
Financial technology platform Paytm, owned by One 97 Communications Limited, along with Vijay Shekhar Sharma is set to acquire Mumbai based private sector general insurer Raheja QBE. The acquisition is subject to the approval from the Insurance Regulatory and Development Authority of India (IRDAI).
According to the fintech platform, this is in furtherance of the company’s mission of driving financial inclusion for over half a billion Indians. Raheja QBE is owned 51% by Prism Johnson and 49% by QBE Australia. Paytm is set to acquire both stakes and would own 100% of the company. The company claims that all employees of Raheja QBE would continue working at Mumbai and other locations.
The acquisition will be done through QorQl Pvt. Ltd, a technology company with majority shareholding of Vijay Shekhar Sharma and remaining held by Paytm. According to Amit Nayyar, president, Paytm, this is an important milestone in Paytm’s financial services journey. “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,” he added.
Through this, the insurance company aims to leverage Paytm’s network to build innovative insurance products to accelerate its reach and adoption. “Today’s announcement marks a continuation of QBE’s strategy to simplify our business,” Vivek Bhatia, CEO, QBE Australia Pacific, stated.
For Vijay Aggarwal, managing director, Prism Johnson Ltd., the decision to sell the company’s stake in Raheja QBE is in line with its mission to create sustainable shareholder value and will enable it to focus its resources on 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,” he elaborated.