Swiss Re to invest in Paytm’s insurance business
According to local reports, Paytm Insuretech, the insurance arm of One 97 Communications, which runs payments platform Paytm, has entered into a strategic partnership with Swiss Re. The reinsurer is planning to invest $123 million in Paytm Insuretech with some money upfront and some dependent on certain milestones. Ultimately, Swiss Re will have a 23% stake in the insurance company.
Last year, Paytm and its cofounder and CEO Vijay Shekhar Sharma have reached an agreement to acquire Raheja QBE for $76 million.
Paytm, which specializes in digital payment systems, e-commerce and finance, plans to leverage its customer base via the insurance unit to develop new insurance products and solutions.
“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.” – Vijay Shekhar Sharma, chairman, managing director and CEO of One 97 Communications.