PolicyBazaar To Raise $50-100 Million From Alpha Wave Incubation

  • Online insurance aggregator PolicyBazaar is in talks to raise $50-100 million in funding from Alpha Wave Incubation.
  • In late July 2020, PolicyBazaar confirmed to launch its IPO in mid-2021.
  • In July, PolicyBazaar had raised $130 million from Softbank Vision Fund, in exchange for a 15% stake in the company.

Gurgaon-based digital insurance aggregator PolicyBazaar is in talks to raise $50-100 million (or about Rs 370-740 crore) in funding from Alpha Wave Incubation (AWI).

Alpha Wave Incubation is an early-stage venture fund introduced by Abu Dhabi’s state entity ADQ and managed by Falcon Edge Capital, a New York-based venture capital and hedge fund. 

According to the reports, The latest investment could value the parent company,  ETechAces Marketing, and Consulting at $2 billion.

In July 2020, PolicyBazaar received $130 million in a mix of pre-decided capital infusion worth $50 million and acquisition of shares worth $80 million from Softbank Vision Fund that gave it a 15% stake in the company. That investment valued the company at $1.5 billion.

In November last year, China-based Tencent Holdings acquired a 10% majority stake in PolicyBazaar for $150 million. The round also saw participation from Softbank.

Till date, The company has raised over $620 million in a total of ten funding rounds.

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According to a report in the ET, The upcoming funding would be a mix of secondary and primary infusion. Earlier in July, Yashish Dahiya, Co-founder, PolicyBazaa, told Bloomberg that the company is planning to raise an additional $250 million in funding at a valuation of $2 billion.

In mid-July, PolicyBazaar said that the company is planning to launch its IPO (initial public offering) in mid-2021 at a valuation of more than $3.5 billion.

Commenting on the IPO launch, Yashish Dahiya said, “We have a global interest and will raise in the coming weeks.”

Currently, SoftBank and Singaporean state investment firm Temasek Holdings Pte each of them holds about a 15% stake in the company, while Tencent and Tiger Global have about 10 and 8% ownership, respectively.

About PolicyBazaar – PolicyBazaar is a Gurgaon-based digital insurance company founded in 2008 by IIT Delhi and IIM alumni Yashish Dahiya, Alok Bansal, and Avaneesh Nirjar. PolicyBazaar is an online platform allowing users to compare financial services from various insurance companies.

Investors, including Chiratae Ventures, Softbank, Info Edge, Inventus, Premji Invest, Ribbit Capital, Steadview, Tiger Global, among others, have invested in the company.

PolicyBazaar currently competes with Acko, Artivatic, and others.

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