Digital payments platform Paytm announced Switzerland-based reinsurer Swiss Re will buy a 23 per cent stake in the Paytm Insuretech for approx 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.
Paytm Insuretech (PIT), which is the unit of Paytm, plans to leverage the digital firm's customer base and merchant ecosystem to develop innovative insurance products. Paytm Insuretech had acquired insurance company Raheja QBE in July 2020.
Both the transactions are subject to regulatory approvals.
"We look forward to gaining from Swiss Re's global insurance capabilities and building innovative products to tap into the Indian market," said MD and CEO of Paytm, Vijay Shekhar Sharma. The managing director would also be making an investment in Paytm Insuretech in his personal capacity along with Swiss Re. The company, however, did not disclose the investment details that Sharma will make in PIT.
In a separate development today, the largest stakeholder of Paytm, China’s Ant Group said it is planning to execute nearly 50 per cent of the secondary stake via offer for sale (OFS) in the upcoming IPO of the fintech firm, reported The Economic Times, citing people privy to the matter.
Ant Group is also the second-largest shareholder of Zomato and owns 16.65 per cent of shares. According to the legal experts, any new share being allotted to investors from some other country that shares land borders with India will need a security clearance.