Policybazaar parent PB Fintech to invest Rs 696 crore in subsidiary PB Healthcare Services

PB Fintech Ltd., the parent of insurance brokerage firm Policybazaar, plans to infuse up to Rs 696 crore into its subsidiary PB Healthcare Services Pvt. Ltd. in the 2025-26 financial year, aiming to strengthen the new unit’s operations in India’s growing healthcare market.

The fresh capital injection, announced Tuesday, is subject to shareholder approval via postal ballot and will be made alongside other external investors.

New funding for healthcare arm  

The proposed investment is part of PB Fintech’s broader strategy to expand its portfolio beyond insurance services and enter India’s healthcare and allied services sector.

PB Healthcare Services, which was incorporated in January 2025, intends to use the capital to cover general operating expenses, boost brand awareness, enhance office presence and support other strategic initiatives.

PB Fintech’s filing with stock exchanges stated that the infusion may be made through the purchase of equity shares or Compulsory Convertible Preference Shares during fiscal year 2025-26.

Shareholder approval and terms  

In a regulatory statement, PB Fintech confirmed that the proposed transaction will require approval through a postal ballot. The company said the deal qualifies as a related-party transaction but will be carried out at fair value as determined by a registered valuer.

In addition to PB Fintech’s investment, company leaders including Chairman and CEO Yashish Dahiya, Executive Vice Chairman and Director Alok Bansal, and three other key managerial personnel plan to invest, resulting in a combined stake of up to 40.04% in PB Healthcare Services. Under the current structure, PB Fintech’s ownership could reach 33.63% on a fully diluted basis.

Strategic rationale 

 According to PB Fintech, enhancing the financial position of its healthcare subsidiary allows the parent company to diversify its offerings and tap into a rapidly expanding segment of the Indian market.

The company has already established a solid presence in insurance services, and it hopes this move into healthcare will complement its existing portfolio.

While PB Healthcare Services has no turnover history yet, given its recent incorporation, the new funding is expected to fuel future growth and expansion.

Regulatory process and timeline  

PB Fintech’s board of directors approved the investment plan during a meeting on Tuesday. The company said it would complete the infusion within 90 days of securing all necessary approvals. The precise shareholding allocation may shift depending on the actual amount invested by each participating party.

PB Healthcare Services is expected to obtain any further regulatory clearances if required, ensuring compliance with all relevant norms before the transaction’s completion.