Leading digital payments platform Paytm along with its founder Vijay Shekhar Sharma on Monday announced the acquisition of Mumbai-based private sector general insurance company Raheja QBE, to democratise general insurance services in the country.

Raheja QBE, which started its operations in 2009, is a joint venture between Prism Johnson Limited and QBE Insurance Group, one of Australia's largest insurers.

Prism Johnson Ltd approved divestment of its entire holding of 51% in Raheja QBE General Insurance Company Limited (RQBE) to QORQL Private Limited, a technology company with majority shareholding by Sharma and the remaining held by Paytm (owned by One97 Communications Limited), for an aggregate consideration of Rs 289.68 crore.

"It is an important milestone in Paytm's financial services journey and we are very excited to welcome Raheja QBE General Insurance into the Paytm family," Amit Nayyar, Paytm president, said in a statement.

"Its strong management team will help us accelerate our journey of taking insurance to the large population of India with the aim to create a tech-driven, multi-channel general insurance company," he added.

The acquisition is subject to customary conditions, including, approval from the Insurance Regulatory and Development Authority of India (IRDAI).

Raheja QBE said that all its employees would continue working at Mumbai and other locations.

"The announcement marks both a continuation of QBE's strategy to simplify our business and the beginning of a new and exciting chapter for our strong team at Raheja QBE," said Vivek Bhatia, QBE Australia Pacific CEO.

Paytm would leverage its user base to innovate insurance products and services to accelerate its reach and adoption.

"This move will help the insurance business scale up to new heights by leveraging the large customer base and innovative products offered by Paytm," said Vijay Aggarwal, managing director, Prism Johnson Ltd.