Swiss Re to buy 23% stake in Paytm Insuretech for around Rs 920 crore – The New Indian Express

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Through PTI

NEW DELHI: Digital payments and financial services firm Paytm said on Wednesday that Swiss reinsurance firm Swiss Re will buy a 23% stake in Paytm Insuretech for around Rs 920 crore.

Paytm’s insurance unit, Paytm Insuretech (PIT), plans to leverage Paytm’s customer base and merchant ecosystem to develop innovative insurance products.

Through an investment in PIT, Swiss Re and Paytm will strive to close the insurance protection gap in the market.

“Swiss Re will invest (by means of participating shares and compulsorily convertible preferred shares) approximately 9,200 million rupees (3,973 million rupees in advance, and the remainder in installments, subject to the completion of certain steps) in PIT for a total 23% stake on a fully diluted basis, ”Paytm said in a statement.

The investments in PIT follow the acquisition of Raheja QBE by Paytm Insuretech.

“We are delighted to partner with Swiss Re on our foray into insurance as a key strategic investor. This is an important step in our financial services journey of offering general insurance products to as many people as possible. We look forward to leveraging Swiss Re’s global insurance capabilities and building innovative products to tap into the Indian market, ”said Paytm Chairman, CEO and CEO Vijay Shekhar Sharma.

Sharma will also invest in PIT on a personal basis with Swiss Re.

The company, however, has not disclosed details of Sharma’s investment in PIT.

The investment of Swiss Re and the acquisition of Raheja QBE by Paytm Insuretech are subject to regulatory approvals.

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