SoftBank-backed Policybazaar's parent
firm, PB Fintech, is planning an IPO to raise up to Rs 6,500 crore ($870
million) (IPO). This is the 7th startup in India to do so this year.
The online insurance aggregator is
seeking a valuation of up to $5 billion, up from $2.4 billion in its previous
investment round, according to reports.
The Policybazaar IPO is planned to
include both new shares and an offer for sale, allowing existing investors to
sell their holdings. This is similar to Paytm's proposed public offering, which
is expected to take place later this year.
According to people familiar with the
situation, PB Fintech is expected to file a DRHP with the Securities
and Exchange Board of India (Sebi) soon, with a December listing in mind.
According to the company, similar to Paytm and Zomato, it may organise a
pre-IPO financing round.
According to a source familiar with
the situation, the firm has hired three to four investment bankers to manage
the compliance process and is aiming for a valuation of $4-5 billion. “The
management is planning an initial public offering (IPO) before December 2021.
They're also getting towards the end of the paperwork needed to file the DRHP
As part of its transition from a
private to a public organization, the parent has passed a special resolution
renaming itself PB Fintech Ltd. The business has amended its Articles of
Association to smoothen its public listing in compliance with the Companies, in
a separate filing.
The corporation will have the
opportunity of oversubscription up to 1% of the net offer. The records revealed
that the offer might comprise an offer for sale as well as a pre-IPO private
placement, according to the documents. At an extraordinary general meeting on
July 5, the Gurgaon-based company's board of directors authorized plans for an
The business, which works as a web
aggregator for obtaining retail insurance, lost Rs 218 crore in FY20, compared
to Rs 213 crore the previous year. The figures for FY21 are yet to be released.
The Indian Insurance Regulatory and
Development Authority granted the company an insurance broking licence in June.
Policybazaar will be able to build a physical network while also significantly
expanding its product and service offerings, like as claims support and a
In July, the business launched its
offline growth as a broker, opening 15 stores with hopes to expand to 100
locations. Customers will be able to use the brick-and-mortar stores as
experience centre’s, according to the business. Earlier this month, the company
unveiled a new group health insurance package for SMEs, MSMEs, and large
The trio of Yashish Dahiya, Alok
Bansal, and Avaneesh Nirjar together founded Policybazaar in June 2008. Japan’s
SoftBank, Private equity corporation True North, Premji Invest, Tiger Global Management,
and Temasek are among some of the investors.
In an IPO earlier this month, Zomato
raised Rs 9,375 crore. Paytm has filed a DRHP for an IPO in November to raise
Rs 16,600 crore.
Policybazaar is one of India's
largest insurance platforms. Paisabazaar.com, a b2b business, and ZPhin.com are
two of the group's subsidiaries. In the United Arab Emirates, the company
operates loan and insurance markets.
Policybazaar raised $75 million in
its most recent investment round, sponsored by Falcon Edge Capital of the
United States, for a valuation of $2.4 billion. The funds will be used to
extend the company's services in the UAE and West Asia, according to the
In the midst of last year's Sino-Indian border
tensions, Dahiya, the CEO of Policybazaar had offered to purchase back
Tencent's 10% stake in the corporation's holding company at the time Policybazaar
has to provide information on the OFS or the pre-IPO placement, as well as the
investors who will dilute the firm's interests.