Paytm Enters Insurance Business

Paytm has been blessed by God as demonetisation and present Coronavirus pandemic has helped it to expand its business as it was making people's life easier as it was solving a problem that how payment is to be made. So, if you have a solution for a problem God will automatically pave the wave for your success and the same thing happened in the case of Paytm.

Vijay Shekhar Sharma, Paytm To Acquire General Insurance Company

Paytm, along with its founder Vijay Shekhar Sharma, will acquire 100% in Raheja QBE General Insurance Company Ltd, the company disclosed on Monday.

In a statement, Paytm said that it would acquire the 51% stake currently owned by Prism Johnson and the 49% held by QBE Australia in Raheja QBE General Insurance, subject to approvals from the Insurance Regulatory and Development Authority of India.

According to a stock exchange notification, Prism Johnson will sell its 51% stake in the insurance company to QorQL for an aggregate sum of Rs 289.68 crore.

With this acquisition, Paytm will enter into the general insurance business inorganically. The company had earlier applied for a standalone license but will now withdraw that application, the person quoted above said.

The Raheja QBE acquisition will be made by QorQL Pvt Ltd, a health-focused technology startup where Sharma owns a majority stake, and the remaining is owned by Paytm, the company said.

Sharma and Paytm had bought a stake in the startup for an undisclosed amount back in 2017.The acquisition will help take 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, Paytm in a press release.

As of May 2020, a majority of the policies issued by Raheja QBE were in the motor and liability insurance segment, according to IRDAI data. The person quoted above, however, said the company will focus on health insurance as well given the likely increased demand for such products in the aftermath of the COVID crisis, the person quoted above said.

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