PGIL will undertake general insurance business to offer products under personal lines and commercial lines insurance. Credit: pasja1000 from Pixabay.

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).

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.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

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.