Mumbai: Paytm on Wednesday said Switzerland-based reinsurer Swiss Re will buy a 23 per cent stake in its associate Paytm Insure-tech Pvt Ltd (PIT) for around Rs 920 crore.
“Swiss Re will invest (by way of equity shares and compulsorily convertible preference shares) approx. Rs 920 crore (Rs 397.3 crore upfront, and the remaining in tranches) in Paytm Insuretech Pvt Ltd for an aggregate stake of 23 per cent on a fully diluted basis,” a Paytm statement said.
Through an investment in PIT, Swiss Re and Paytm will work towards closing the insurance protection gap in the market, the statement said.
“It is an important milestone in our financial services journey of taking general insurance products to the masses,” said Vijay Shekhar Sharma, chairman, MD & CEO of One 97 Communications, the firm that owns Paytm. Sharma will also make an investment in PIT in his personal capacity along with Swiss Re....