PB Fintech injects Rs 539 crore into healthcare subsidiary PB Healthcare Services

PB Fintech, the parent company of Policybazaar and Paisabazaar, has made a significant investment of Rs 539.4 crore in its newly formed healthcare subsidiary, PB Healthcare Services Private Limited. The investment marks the first tranche of a larger seed funding round worth Rs 1,461.6 crore, which includes contributions from both PB Fintech and external investors.

The funding was approved earlier through a shareholder postal ballot.

Stake dilution

The investment was completed on April 24 through the subscription of 5.39 crore Compulsory Convertible Preference Shares at Rs 100 per share. With this infusion, PB Fintech’s stake in the healthcare subsidiary will drop from 100% to 32.14% on a fully diluted basis.

The strategic dilution is intended to attract external capital and includes the creation of an Employee Stock Option Plan to attract and retain top talent in the healthcare space.

In a statement, PB Fintech emphasised that the investment is designed to strengthen PB Healthcare's financial foundation and support its ambitious growth goals.

Establishing hospitals

The subsidiary, incorporated in January 2025, plans to establish hospitals with a capacity of up to 1,000 beds in its first year, offering managed healthcare services tailored to Policybazaar's customer base.

The move represents a significant diversification for PB Fintech, whose primary businesses have been in digital insurance and lending. The company sees healthcare as a natural extension of its services and a growing opportunity in India's underserved medical infrastructure landscape.

PB Healthcare was established to operate in the healthcare and allied services space and is headquartered in Gurugram. It currently has an authorised capital of Rs 2,500 crore but has yet to report turnover, given its recent incorporation.

Financial performance

PB Fintech reported strong financial results in the December quarter of FY25, with revenue growing 48% year-on-year to Rs 1,292 crore and net profit rising to Rs 72 crore from Rs 37 crore a year ago. The healthcare investment is expected to build on this momentum and broaden the company's service ecosystem in the Indian market.