PB Fintech Ltd, the parent company of Policybazaar, India's largest online insurance portal, has filed draught papers with market regulator SEBI to raise $6,017.50 crore through an initial public offering (IPO). After Zomato, Paytm, Mobikwik, and CarTrade, the Gurugram-based firm has become the fifth startup to initiate proceedings to list on Indian stock exchanges.
PB Fintech, which also owns Paisabazaar.com, an online credit comparison portal, is aiming for an IPO valuation of $5.5-6 billion. It also intends to raise approximately 750 crores through a private placement of equity shares before the IPO.
Policybazaar, which is backed by notable investors such as Softbank, Temasek, Info Edge, Tiger Global, and Premji Invest, has now joined a growing list of tech-based start-ups looking to tap the IPO market over the next 18 months by capitalizing on the country's ongoing digital boom. True North, Steadview Capital, Inventus, and Wellington Management are among the other investors.
The IPO consists of a fresh issue of equity worth 3,750 crores and an offer for sale by existing shareholders and promoters worth 2,267.50 crores.
SoftBank will sell Rs 1,875 crore ($250 million) in shares in the IPO's offer for sale component, while founders including chief executive Yashish Dahiya will sell up to Rs 392.50 crore ($52 million).
The company also stated that it is in discussions with its book-running lead managers (BRLM) about raising approximately Rs 750 crore ($100 million) through a private placement of equity shares before the IPO.
Currently, for the proposed IPO book running lead managers are Kotak Mahindra Capital, Morgan Stanley, Citigroup Global Markets India, ICICI Securities, HDFC Bank Ltd., IIFL Securities, and Jefferies India.
In June, the Insurance Regulatory and Development Authority of India (IRDAI) granted the startup an insurance broking license. This will enable Policybazaar to establish a physical network while also significantly expanding its product and service offerings, including claims assistance and a point-of-sale network.
In the fiscal year 2019, Policybazaar, which was founded in 2008 has over 40 insurers on its platform, had 10 million unique customers. On its platform, Policybazaar allows users to compare the features and prices of insurance products related to life, health, travel, property, and auto.
Policybazaar is one of the largest insurance marketplaces in India. Paisabazaar.com, b2b venture, and ZPhin.com are among the group's subsidiaries. In the United Arab Emirates, the company also operates lending and insurance marketplaces.
In July, the startup announced its offline expansion as a broker, opening 15 stores with plans to expand to 100. According to the company, the brick-and-mortar stores will serve as customer experience centers. Earlier this month, the company also announced a new group health insurance program for SMEs, MSMEs, and large corporations.
Over the course of 13 rounds of funding, PolicyBazaar has raised a total of $766.6 million. Their most recent funding came on March 17, 2021, in the form of a Private Equity round led by Falcon Edge Capital, according to Crunchbase.