Paytm, CEO Sharma to acquire general insurer Raheja QBE for Rs 568 crore

Raheja QBE will be acquired through QorQl Pvt. Ltd, a technology company in which Vijay Shekhar Sharma has majority shareholding.

Paytm and the firm’s Chief Executive Vijay Shekhar Sharma (pictured) will acquire Raheja QBE General Insurance for nearly Rs 568 crore to expand the digital payments company’s financial services. 

According to regulatory filings made by Prism Johnson, Raheja QBE would be sold “to QorQl, a tech company with majority shareholding of Vijay Shekhar Sharma and remaining held by Paytm (owned by One97 Communications), for an aggregate consideration of Rs 289.68 crore”.

Paytm will acquire Prism Johnson’s 51 per cent and QBE Australia’s 49 per cent stake in Raheja QBE to become 100 per cent owner. The acquisition is expected to close by March 31 next year, subject to approvals from the Insurance Regulatory and Development Authority of India and other regulators.

“It is an important milestone in Paytm’s financial services journey, and we are excited to welcome Raheja QBE into the family. Its strong management team will help us create a tech-driven, multi-channel general insurance firm with innovative and affordable insurance products,” said Paytm President Amit Nayyar.

According to regulatory filings, Raheja QBE had revenue of Rs 189.46 crore and net worth of Rs 154.38 crore as of March 31.

Vijay Aggarwal, managing director Prism Johnson, said: “Our decision to sell our stake is in line with our mission to create sustainable shareholder value and will enable us to focus our resources on our 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.”