Paytm, an Indian-based eCommerce payment system and financial technology company has announced plans to purchase Raheja QBE General Insurance Co. Ltd.

Paytm President Amit Nayyar said in a statement, 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. 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 with innovative and affordable insurance products.

Paytm stated that it is in the process of acquiring a 100% stake in the company. The Mumbai-based insurer now owns 51 percent of Prism Johnson’s construction materials company and 49 percent of QBE Australia, one of the country’s largest global insurers.

The aim of the purchase is to take insurance products to the grassroots of India, Paytm wrote.

QBE Australia Pacific CEO Vivek Bhatia said the announcement marks the continuation of QBE ‘s business simplification strategy.

The agreement must be approved by the Indian Insurance Regulatory and Development Authority.

Paytm extended its Paytm Postpaid program last month so that its payment app can be used in convenience stores and chain stores, along with the possibility of an increased credit limit.

Paytm added that the service will be available to buy food, milk, and other home essentials from neighborhood stores and other popular retail destinations.

Last fall, Paytm had an agreement to secure $2 billion in new funding round in preparation for competition with other payment services, including Facebook’s Libra and Flipkart’s PhonePe.

The financing was to come from Ant Financial and Japan’s SoftBank Group, among other investors and was split into equal shares between the company’s equity and debt, taking Paytm ‘s valuation to around $16 billion.

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