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Digital payments major Paytm on Wednesday announced that its associate, Paytm Insuretech (PIT), has entered into a strategic partnership with Swiss Re under which the reinsurer will pick up 23 per cent stake in PIT.
Swiss Re will invest (by way of equity shares and compulsorily convertible preference shares) approximately ₹920 crore (₹397.3 crore upfront and the remaining in tranches subject to fulfilment of certain milestones) in PIT for an aggregate stake of 23 per cent on a fully diluted basis.
"As part of Paytm's financial inclusion offering, this partnership is in furtherance of the company's mission to bring half a billion Indians into the mainstream economy," Paytm said.
Paytm’s Vijay Shekhar Sharma (Chairman, MD and CEO of One 97 Communications) said, “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 to take 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.”
Swiss Re is investing alongside Paytm’s Vijay Shekhar Sharma. This follows the announcement of the acquisition of Raheja QBE by Paytm Insuretech.
The investment by Swiss Re and the acquisition of Raheja QBE by Paytm Insuretech are subject to regulatory approval.
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