Indian digital payment firm Paytm is reportedly in talks to acquire digital insurance marketplace Coverfox for $100m-$120m in cash.

If the proposed deal materialises, it will be the largest acquisition for SoftBank-backed firm, which has been making gradual move into financial sector.

As part of its strategy to bolster presence in financial sector, Paytm has created ventures such as Paytm Money, Paytm Life Insurance, and Paytm General Insurance.

A source familiar with the development told the Economic Times: “The Paytm board is in the process of finalising the contours of the deal. There is still a chance that it may fall through as the board deliberates on the pros and cons of the transaction.”

After acquiring Coverfox, Paytm will directly compete with India’s largest online insurance marketplace PolicyBazaar.

According to the publication, the proposed takeover may face resistance from SoftBank as the Japanese investment firm also owns a significant stake in PolicyBazaar.

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Coverfox, established in 2013, provides life and non-life insurance policies from more than 45 insurance companies through a network of around 50,000 agents.

Last year, Coverfox sold insurance policies worth $100m and generated $22m in revenues.