PTM, India’s most valuable start-up, and its co-founder and chief executive Vijay Shekhar Sharma, announced on Monday that they have reached an agreement with insurance firm Rajya QBE for a sum of Rs 76 million as the launch of financial services Since then, insurance has come to an end at the height of the country. Market.
Rahaja is acquiring QBE through Sharma Corkel Pvt. Ltd. Ltd., a firm in which it owns a majority stake in PTM with the remainder. A PTM spokesman told TechCrunch that it was all a cash deal.
Raja QBE, which offers insurance services to cover an individual’s health, home, vehicles, and also protects against commercial property and workplace injuries, is owned by Prazm Johnson (51%). And QBE Australia (49%). The two companies said that as part of the agreement, Rajaja is at 100% stake in QBE.
PTM, whose services are used by tens of millions of Indians every month, said the acquisition would help democratize general insurance services in the country. Mumbai-based Raja QBE has attracted more than 41,000 subscribers, and sold 69,000 new policies in the financial year ending March this year.
Rajya QBE’s “strong management team will help us accelerate our journey to take insurance to India’s large population with the goal of building a multi-channel general insurance company that runs tech-savvy, innovative and affordable insurance products.” PTMK, in a statement.
In India, 1.3 billion people in just one-third of the nation currently have access to insurance, and some analysts say digital firms could be instrumental in bringing these services to the public. According to the rating agency ICRA, as of 2017, insurance products reached less than 3% of the population.
According to the World Bank, the average Indian earns about ، 2,100 a year. The ICRA estimates that of the Indians who purchased the insurance product, they were spending less than $ 50 on it in 2017.
In recent years, several startups and established banks have launched products to conquer this market. PTM’s insurance, insurance sockets, which run a number of businesses, including digital banking and online lending, fit well into its overall offerings.
“The move will help take the insurance business to new heights by taking advantage of Paytm’s large customer base and innovative products,” said Vijay Agarwal, Managing Director, Prism Johnson.
The acquisition of Raja QBE is subject to traditional conditions, including approval from the Insurance Regulatory and Development Authority of India (IRDAI), both firms warned.