Paytm Insuretech plans to leverage Paytm’s customer base and merchant ecosystem to develop innovative insurance products.
Ahead of its initial public offering Paytm’s associate company Paytm Insuretech Pvt Ltd is raising a strategic round of Rs 920 crore from global reinsurance firm Swiss Re.
The company will invest in by way of equity shares and compulsorily convertible preference shares for a 23% stake.
While Rs 397 crore investment will happen up front, the remaining amount will come in tranches subject to fulfilment of certain milestones.
India’s insurance market presents a significant opportunity, given the market’s protection gap and under-penetration compared to the global average.
Gross written premium for non-life insurance is expected to increase from $27 billion as of the financial year 2021 to $50-60 billion by the financial year 2026(1), as per RedSeer data.
“We are excited to partner with Swiss Re for our insurance foray as a key strategic investor. It is an important milestone in our financial services journey of taking general insurance products to the masses. We look forward to gaining from Swiss Re’s global insurance capabilities and building innovative products to tap into the Indian market,” said Vijay Shekhar Sharma, Chairman, MD, and CEO of One 97 Communications that owns and operates Paytm.
Swiss Re is investing alongside Paytm’s Vijay Shekhar Sharma.
Paytm Insuretech plans to leverage Paytm’s customer base and merchant ecosystem to develop innovative insurance products.
The development happens soon after Paytm Insuretech announced the acquisition of Raheja QBE.The investment by Swiss Re and the acquisition of Raheja QBE by Paytm Insuretech Pvt. Ltd. is subject to regulatory approvals.
