Fintech

Insurance Aggregator Policybazaar To Raise INR 350 Cr From Parent Entity

• ByStartupStory     |    November 25, 2023

Insurance aggregator Policybazaar is poised to receive an infusion of INR 350 Cr ($42 Mn) from its Gurugram-based parent company, PB Fintech Ltd. As part of this transaction, approximately 58 lakh shares will be allocated by Policybazaar to its parent entity.

The investment by PB Fintech is slated to occur in staggered stages across the financial years 2023-24 and 2024-25. The recent filing with the stock exchange stated, “The company has invested Rs 349,99,99,904 against which 58,04,311 equity shares of Rs 10 each at a premium of Rs 593 per share of Policybazaar have been allotted.”

PB Fintech articulated, “The present investment allows the company to strengthen the financial health of its wholly-owned subsidiary to meet its general operating expenses and enhance brand awareness, office presence, and strategic initiatives.”

Policybazaar, specializing in life, health, and motor insurance offerings from various insurers, recently saw a divestment of 2.98% stake worth INR 522.5 Cr by venture capital firm Tiger Global through open market transactions.

Despite Policybazaar’s robust performance, with Q2 FY24 insurance premiums reaching INR 3,475 Cr compared to INR 2,545 Cr in Q2 FY23, the company continues to operate without profitability, although it holds over 90% market share in online policy aggregators.

PB Fintech witnessed a significant decline of over 89% in net losses year-on-year, dropping to INR 21 Cr in the quarter ended September 2023. However, this reflects a widened net loss from nearly INR 12 Cr in Q1 FY24, contrasting the INR 187 Cr net loss in Q2 of the financial year 2022-23.

The shares of PB Fintech concluded at INR 803.80 on Friday, November 24.

 

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