As part of the transaction, close to 58 lakh shares will be allotted by Policybazaar to its parent PB Fintech
PB Fintech’s infusion is expected to take place in multiple tranches over the financial years 2023-24 and 2024-25
PB Fintech saw its net loss decline over 89% year-on-year (YoY) to INR 21 Cr in the quarter ended September 2023
Insurance aggregator policybazaar
is set to receive an INR 350 Cr ($42 Mn) fund infusion from its Gurugram-based parent company PB Fintech Ltd. As part of the transaction, close to 58 lakh shares will be allotted by Policybazaar to its parent.
“The company has invested Rs 349,99,99,904 against which 58,04,311 equity shares of Rs 10 each at a premium of Rs 593 per share of Policybazaar have been allotted,” an official filing with the stock exchange said.
PB Fintech’s infusion is expected to take place in multiple tranches over the financial years 2023-24 and 2024-25
“The present investment allows the company to strengthen the financial health of its wholly-owned subsidiary to meet its general operating expenses and enhance brand awareness, office presence and strategic initiatives,” PB Fintech said.
Policybazaar offers life, health and motor insurance, among others, from various insurers to its customers. Recently, venture capital firm Tiger Global divested another 2.98% stake worth INR 522.5 Cr in the new-age tech startup, through open market transactions.
Policybazaar clocked insurance premiums worth INR 3,475 Cr in Q2 FY24, up from INR 2,545 Cr in Q2 FY23. While the startup claims to hold more than 90% market share in the online policy aggregators space, it is still not profitable.
PB Fintech saw its net loss decline over 89% year-on-year (YoY) to INR 21 Cr in the quarter ended September 2023. The company reported a net loss of INR 187 Cr in the second quarter (Q2) of the financial year 2022-23 (FY23). However, net loss widened from nearly INR 12 Cr in Q1 FY24.
The shares of PB Fintech closed at INR 823. 75 during Friday’s (November 24) session.
