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May 23, 2022

Paytm to invest $122m in joint venture general insurance company

One97 Communications (OCL), a digital financial services company operating under Paytm brand, is planning to invest $121.9m (INR9.5bn) in its joint venture (JV) firm Paytm General Insurance Ltd (PGIL).

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PGIL is a JV between One97 Communications with 49% stake and VSS Holdings (VHPL), a company owned and controlled by OCL’s managing director Vijay Shekhar Sharma, holding the remaining 51% stake.

Although PGIL was incorporated in 2018, it is due to start general insurance business. This is subject to receipt of the certificate of registration from Insurance Regulatory and Development Authority (IRDAI).

One97’s investment will be made in tranches over a period of 10 years in the JV.

Following the investment, One97’s stake in PGIL will be increased to 74% while PGIL will become a wholly-owned unit of Paytm.

In a stock exchange filing, One97 Communications said: “Both the Company and VHPL (i.e. the existing shareholders of PGIL) would make primary infusion of capital in PGIL at the same price.”

The firm said the planned investments would be utilised for launching the general insurance business of PGIL.

It will also be used for boosting its operations while maintaining the minimum solvency margin as agreed under the relevant insurance laws and regulations.

Upon securing IRDAI’s certificate of registration, PGIL will undertake general insurance business.

It will offer its customers with products under personal lines and commercial lines insurance including private car, two wheeler, health, property and liability insurance.

Free Report
img

How attractive are current investment opportunities in Europe?

Europe has been identified as one of the most favorable regions for investors, seeing high investment activity in the past year. Most of these investments have been through Debt Offering, valued at close to $700 billion. The region has provided attractive investments in a diverse set of companies. Companies who tend to major themes such Digital Media, Cloud, Artificial Intelligence, E-commerce, and Big Data are recording the highest number of deals, with Digital Media recording close to 2,000 deals. However, GlobalData’s whitepaper offers a full view of the market, analyzing less successful or attractive points of investment as well, examining statistics on Equity Offering investments and PE/VC deals. Understand how government agencies for economies around the world use GlobalData Explorer to:  
  • Track the M&A and Capital Raising volumes into their target market
  • Identify the top sectors in the target market attracting the investments
  • For any investment segment, identify the top Investors inside and outside the target economy that are already investing in the Segment
  • Assess and showcase the growth potential for various Industries in the target economy
Don’t miss out on key market insights that can help optimize your next investment – read the report now.
by GlobalData
Enter your details here to receive your free Report.

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