BENGALURU :
Switzerland-based reinsurance firm Swiss Re will make investments ₹920 crore ($127 million) in Paytm’s common insurance coverage enterprise for a 23% stake on a completely diluted foundation, the Noida-based monetary providers firm mentioned on Wednesday.
Swiss Re will make investments ₹397.3 crore ($52.9 million) upfront in Paytm Insuretech Pvt. Ltd (PIT) and the remaining in tranches, topic to the fulfilment of sure milestones.
Paytm’s Vijay Shekhar Sharma can also be anticipated to make an funding within the entity. The funding is topic to regulatory approvals.
In June, Mint reported that One97 Communications Ltd, the operator of the Paytm, is about to increase ₹743 crore to entities VSS Holdings and VSS Investco.
Swiss Re’s funding comes greater than a yr after Paytm entered the overall insurance coverage enterprise by the acquisition of Mumbai-based common insurance coverage firm Raheja QBE for ₹568 crore. Nevertheless, the deal is but to shut.
“We’re excited to accomplice with Swiss Re for our insurance coverage foray as a key strategic investor. It is a vital milestone in our monetary providers journey of taking common insurance coverage merchandise to the lots. We look ahead to gaining from Swiss Re’s international insurance coverage capabilities and constructing modern merchandise to faucet into the Indian market,” mentioned Vijay Shekhar Sharma, chairman, managing director and chief government of One 97 Communications Ltd.
Supply: Live Mint