PB Fintech, Founders To Infuse INR 829 Cr In Healthcare Arm

Listed insurtech company PB Fintech has received approval from its board to invest INR 696 Cr (around $80 Mn) in its wholly owned subsidiary PB Healthcare Services Pvt Ltd.

This follows PB Fintech group chairman and CEO Yashish Dahiya’s statement last year that the company would make a one-time investment of $100 Mn to acquire a 30% stake in a new healthcare company. PB Fintech incorporated its healthcare arm in January.

The PolicyBazaar parent will infuse the capital by way of subscribing or purchasing PB Healthcare Services’ equity shares of INR 10 each or compulsorily convertible preference shares of INR 100 each in the next fiscal year (FY26), as per the company’s stock exchange filing.

However, the investment is subject to approval by shareholders of the company.

Following the capital infusion, PB Fintech would hold a 33.63% stake in PB Healthcare Services.

The funding will help PB Fintech’s healthcare subsidiary meet its general operating expenses, raise brand awareness, establish office presence, among others.

Besides the proposed investment of INR 696 Cr, PB Fintech cofounders Yashish Dahiya and Alok Bansal, along with three key managerial personnel, will additionally invest INR 132.75 Cr in the healthcare subsidiary for a combined 6.61% stake.

This takes the total proposed investment in PB Healthcare Services to INR 828.75 Cr (about $95 Mn).

Brokerage firm Bernstein expressed caution over the company’s healthcare plans earlier, arguing that it would mark a departure from an asset-light business model to an asset-heavy one.

The proposed investment in the healthcare subsidiary comes as PB Fintech looks to diversify beyond its bread-and-butter financial services business. 

The company has also been doubling down on its financial services segment. Last year, it incorporated a subsidiary PB Pay as part of its plan to venture into the payment aggregator business.

Another of its subsidiaries, PB Financial Account Aggregator Private Limited (PBAA) received the account aggregator licence from the Reserve Bank of India (RBI) in October 2024.

PB Fintech reported a 92% jump in its consolidated profit after tax (PAT) to INR 71.54 Cr in Q3 FY25 from INR 37.23 Cr in the year-ago quarter. Operating revenue zoomed 48% to INR 1,291.62 Cr during the quarter from INR 870.89 Cr in Q3 FY24.

At 1:53 PM, shares of PB Fintech were trading 3.98% lower at INR 1,411 apiece on the BSE.