New Delhi. After the mobile wallet business and e-commerce platform, Paytm is now ready to enter the insurance market. Paytm and its founder Vijay Shekhar Sharma will buy a 100% stake in Raheja QBE General Insurance. This deal will be worth 570 crores. According to the information received, Vijay Shekhar Sharma’s total stake in this insurance company after the acquisition will be 51 percent. However, Paytm’s parent company One97 Communications (One97 Communications) will buy the remaining stake. However, the deal is yet to be approved by the Insurance Regulatory and Development Authority of India (IRDAI).
Paytm Times of India in preparation for taking NBFC license
Wrote in a report quoting Vijay Shekhar Sharma that when he started Paytm Payments Bank, he had stocks of One 97 Communications, with the financing of that, he is investing capital in this acquisition. In this report, quoting sources, it has also been said that his company has also applied for the license of the company Non-Banking Financial Company (NBFC).
His company now wants to expand its reach to the Broader Financial Services business. However, the RBI has not yet approved the NBFC license. Paytm says that NBFC license lending is part of the plan to build vertically.
Raheja QBE General Insurance, a joint venture between these two companies, states that Raheja was a joint venture of
QBE Prism Johnson (Prism Jhonson) and QBE Insurance Group of Australia (QBE Insurance Group, Australia). Prism Johnson is a BSE Listed Companies and had a 51% stake in the company. Another 49 percent stake is held by the QBE Insurance Group. In a stock exchange filing, Prism Johnson said that it will save its stake to Paytm and its founder for Rs 290 crore.
Paytm wanted to enter the insurance market for a long time
Paytm has long wanted to enter the general insurance business. It was also said in some media reports that Paytm wants to start its own insurance venture and is considering applying for a license from IRDAI. This year, the company has got success in obtaining an insurance brokerage license.
Paytm president Amit Nayyar said that we chose the path of acquisition so that we can get into the field of general insurance quickly. This will help us save time in saving about 24 to 30 months. Pankaj Arora, the current CEO of Raheja QBE, will head this business along with Nayyar. Nayyar currently heads the financial services business of Paytm.