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PolicyBazaar To Raise Investment In The Range Of $50-100 Mn From Alpha Wave Incubation

Online insurance aggregator PolicyBazaar has acquired an additional $75 Mn in a funding round led by Falcon Edge Capital to grow its presence in the United Arab Emirates (UAE) and the Middle East region. The company’s CEO Sarbvir Singh verified the development without disclosing further details about the round.

PolicyBazaar, which is managed by parent company PB Fintech (formerly Etechaces Marketing and Consulting Pvt. Ltd), has acquired $690 Mn funding till now from marquee investors like Tiger Global Management, Wellington Management, PremjiInvest, Inventus Capital, Tencent Holdings, and True North. The company had earlier raised $130 Mn from SoftBank at a valuation of $1.5 Bn.

The company is now planning to list publicly through a $540 Mn (or INR 4,000 Cr) initial public offering (IPO) this year at a valuation of $3.5 Bn. It is presently underway to confirm its merchant bankers, and at least six such bankers might be given the mandate to manage the IPO.

In July last year, co-founder and former CEO Yashish Dahiya had announced the company’s plans to go public by September 2021, intending to acquire $250 Mn as a pre-IPO exercise. He had also explained that the company plans to list itself in India, but was also open to the idea of dual listing if the Indian government approves.

Founded in 2008 by IIT Delhi and IIM Ahmedabad alumni Dahiya, Alok Bansal, and Avaneesh Nirjar, PolicyBazaar is an online platform enabling users to buy life insurance and general insurance. It operates two other sister companies — lending marketplace PaisaBazaar and healthtech venture DocPrime.

Both the companies — PolicyBazaar and PaisaBazaar — operating under the PB Fintech banner reported combined revenue of INR 854.7 Cr in the financial year that ended in March 2020, illustrating a 147% spike from FY2019’s INR 345.8 Cr. Its expenses grew by 33%, from INR 864 Cr to INR 1150 Cr during the same period. Thereafter, the company’s loss reduced about 12%, from INR 344 Cr to INR 304 Cr.

On a standalone basis, the insurtech platform PolicyBazaar reported a healthy 66% increase in revenue, from INR 310.3 Cr in FY2019 to INR 515 Cr in FY2020. The company’s expenses had also increased by 40%, from INR 525.55 Cr to INR 737 Cr. Its losses also increased 2%, from INR 213.12 Cr to INR 218.1 Cr.

Paisabazaar registered INR 229 Cr revenue with total expenses of INR 252.9 Cr. The advisory platform reported a 4.1% increase in losses to INR 101.1 Cr from INR 97.3 Cr reported in the previous year.

The parent company PB Fintech, however, was the only profitable entity of the three. It registered only INR 147.9 Cr as earnings in the FY2020, but with an expense of INR 99.9 Cr leading to a profit of INR 9.7 Cr. The entity had reported a net loss of INR 15.81 Cr in the previous year, with a revenue of INR 84.04 Cr.

PolicyBazaar currently has job openings for the positions of Front-end Engineer, Database Developer, Dot Net Developer/ Sr. Developer, Java Developer, and UI Designer for Mobile and Web.

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