According to the online financial services statement made this Monday, Vijay Shekhar Sharma’s QorQI Technology will acquire a 100 percent stake in the insurer from both Prism Johnson and QBE Australia who are the parent companies that have been seeking to exit from the joint venture. If we look at the stakeholders, India’s Prism Johnson holds about 51 percent in Raheja QBE, while QBE Australia has the rest. Paytm has said that the deal will be subjected to approvals from India’s Insurance regulator.
“We took the acquisition route to accelerate our journey into general insurance. This would help us save between 24-30 months,” highlighted Vijay Sharma, Spokesperson, Paytm. “The company’s strong management team would also help us in the faster expansion of the insurance business,” he added.
If we look at the stakeholders, India’s Prism Johnson holds about 51 percent in Raheja QBE, while QBE Australia has the rest. Paytm has said that the deal will be subjected to approvals from India’s Insurance regulator.
While if we see the information relayed by some credible sources, the working CEO of Raheja QBE General Insurance along with Amit Nayyar, President Paytm, and Vineet Arora, CEO of Paytm General Insurance Limited will continue to lead the business. These three personals will head the business and will be responsible to watch over its expansion.
Paytm has stated that the deal will be subjected to approvals from India’s Insurance regulator. While, as said by Amit Nayyar in his statement, “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.” The statement also cited that the Mumbai-based insurer will be expected to continue operating from the country's financial capital and as well as from other locations.
With Paytm already bagging in a broking license, it allows the company’s subsidiary insurance broking to go to the market and sell its products in partnership with their licensed insurers. They have said the company would continue to sell its products with the various tie-ups that they have on its platform.