FinTech: Indian Insurance Marketplace PolicyBazaar Plans $500M IPO

July 21, 2020 | FinTech, News

The SoftBank backed startup will likely garner a valuation of over $3.5B.

Yashish Dahiya, the co-founder of the online Indian insurance platform PolicyBazaar, has big financing plans for it. In the coming weeks, he hopes to raise $250 million of pre-IPO financing at a likely valuation of $2 billion. That will be followed by an IPO sized $500 million in September 2021. Dahiya said there was global interest in the funding round, likely to close in the coming weeks. (Bloomberg)

PolicyBazaar: top-notch backers

Currently, SoftBank and Temasek hold approximately 15% each of the firm, while Tencent and Tiger Global own about 10 and 8%, respectively.

At a valuation likely to be over $3.5 billion, PolicyBazaar’s $500 million IPO would mark the financial market debut of a poster-child of the Indian digital startup scene.

Its bumper valuation would account for:

  • Insurance penetration in India was less than 4% in 2017, according to the India Brand Equity Foundation
  • Insurance industry revenue could touch $280 billion this year
  • Over the next three to five years revenues could leapfrog by up to 15% annually
  • Policybazaar sells a million policies per month and is India’s largest insurance aggregator
  • Since its launch in 2008, Policybazaar has achieved 100% year-on-year growth
  • It achieved 10 million customers by 2019

2018 expansion a “mistake”

However, growth aside, PolicyBazaar stumbled into loss-making territory after a $200 million funding in 2018 led by SoftBank Group.

The insurtech thereafter went ahead and boosted capacity by hiring call center and operations staff to grab more market share. It also splurged on advertising and promotion.

Earlier this month, on a video interview with FT, Dahiya called the move a mistake that pushed the company into losses.

However, it appears that PolicyBazaar is now profitable, whereas other high-profile startups such as budget hotel chain Oyo and payments platform Paytm are lossmaking.

Speaking to PTI, Dahiya said the company should log revenues of ₹1,100 crores and post a marginal profit during the current fiscal 2020-21. The COVID-19 pandemic triggered a surge in demand for insurance. As a result, year-on-year growth this year is running at between 70% and 100% depending on the product, reported LiveMint.

Related Story:  Online Insurance Marketplace and Insurtech Policygenius Raises $100 Million

Image of 13 June 2018; Yashish Dahiya, Co-Founder & CEO, PolicyBazaar:  MoneyConf/Flickr

Free Industry News

Subscribe to our free newsletter for updates and news about alternatives investments.

  • This field is for validation purposes and should be left unchanged.


Latest Alternative Investment News
Blackstone Acquires Largest Consumer DNA Database
August 7, 2020     Alternative Investments, Private Equity

Private Equity Meets Both Privacy Concerns and Major Growth in Next-Generation Industry.  The PE space is buzzing over private equity giant Blackstone’s acquisition of DNA testing company Ancestry.  The firm…
Private Equity: Ares Raises $5 Billion En Route To $30 Billion 2020 Haul

Ares Leapfrogs Competitors Through Pandemic.  Investment firm giant Ares has raised $5 billion for its private equity fund in the second quarter.  The firm’s goal is to raise up to…
Alternative Investments/Real Estate: HOMZ ETF Issuer To Ring NYSE Closing Bell To Mark Fee Cut
August 6, 2020     Alternative Investments, News, Real Estate

The Hoya Capital Housing ETF (NYSE: HOMZ) announced Wednesday a cut in its expense ratio from 0.45% to 0.30%, effective from August 1, 2020. It claimed that it has the…
FinTech: Grab Financial Flags Off A Bouquet of New Services
August 6, 2020     FinTech, News

Grab Financial Group Expands Suite of Products Under ‘Thrive with Grab’ Strategy