INTRO: The online payment company Paytm and its founder and CEO, Vijay Shankar Sharma, are together acquiring Raheja QBE General insurance firm from the Rajan Raheja Group and Australia’s QBE Insurance Group. Sharma announced Monday that he has finalized an affect Prism Cement to shop for the latter’s 51% stake in Raheja QBE. The all-cash deal is reportedly worth Rs. 289.68 crore (~$38 million), which values Raheja QBE at 568 crores (~$76 million). He also will acquire the remaining stake within the insurer held by the Australian company.
The acquisition will happen through QORQl Pvt. Ltd, a firm during which Sharma personally holds a majority stake. Paytm, owned by One97 Communications, holds the remaining stake within the company. The acquisition will help Paytm enter the insurance space as a part of its plans to diversify its business and expand its reach across the country.
In a statement that was issued earlier today, Paytm president, Amit Nayyar said: “(QBE’s) strong management team will help us accelerate our journey of taking insurance to the massive population of India with the aim to make a tech-driven, multi-channel general insurance company”. And then In a different statement, QBE’s Australia Pacific CEO, Vivek Bhatia, said the move would help simplify the group’s business.
It was started in 2009, Raheja QBE may be a joint-venture between Prism Johnson Limited and QBE Insurance Group. It is a general insurance firm that offers insurance products across a good range of categories. That includes health, home, vehicles, and more. It also provides insurance on commercial properties, also as protect workplace injuries and more. According to reports from, TechCrunch, the corporate has over 41,000 customers and, sold 69,000 new policies in FY2019-2020.