Reinsurance provider SwissRe has agreed to invest Rs 92bn ($123m) in India-based digital financial services provider Paytm’s insurance arm, Paytm Insurtech, VCCircle reported on Wednesday.
Approximately $53m of the cash will be provided upfront, with the rest paid in tranches based on the achievement of certain milestones. The deal will give Swiss Re a 23% stake in the business.
Paytm runs a mobile platform that gives users access to banking services and credit, as well as other offerings like insurance brokerage and payment processing services. Paytm Insurtech aims to use its customer base and merchant network to introduce new insurance products.
One97 Communications, Paytm’s parent company, filed for an initial public offering in July this year and is reportedly looking to raise up to $2.2bn through the offering.
Internet and telecommunications group SoftBank and e-commerce firm Alibaba’s financial services affiliate, Ant Financial, are among One97’s investors.
